Areté analyses show that the market continues to record extraordinary volatility. On the financial market The ICE, prices of the robusta variety, after the historic records of April, first recorded a -18% and then rebounded by 16% from mid-May. Similar dynamics characterized the arabica variety which, in the same period, after a 16% drop, recorded a +10%.
Uncertainty about the size of the 24/25 crops exposed to uncertain weather, represents the main source of volatility and exposes the market to speculative phenomena. Non-commercial operators are unbalanced in buying; many investors have moved from the cocoa market to the coffee market.
However, the Conab (Companhia Nacional de Abastecimento) projections on Brazilian production for the 24/25 campaign (Mar-Feb), published yesterday, show a potential production rebound of 6,8% (+8,2% Arabica and +3,3% Robusta).
