Arabica Coffee Prices Rise Due to Brazil Weather Concerns

Arabica coffee futures in New York have risen to a two-month high amid concerns that adverse weather conditions in Brazil, the world's top coffee producer, could limit production.

Multiple periods of cold weather and light frost may restrict output. Michael McDougall, an analyst at McDougall Global View, stated that there is growing concern that this year's coffee crop in Brazil will be lower than expected. Furthermore, the 2026 crop could also be limited due to premature flowering caused by weather-related stress.

The most active futures contract rose as much as 2.6% on Tuesday, with prices increasing for the fifth consecutive session. Slower-than-expected exports from Brazil and reports of frost in the main coffee-growing regions, Sul de Minas and Cerrado, also contributed to the increase.

Brazil's combined Arabica and Robusta coffee crop for the 2025-26 period is expected to reach 63.9 million 60-kilogram bags each, 2.1% less than last year, according to a survey by the Coffee Trading Academy.

In New York, Arabica coffee rose by 1.2% to 340 cents per pound. In London, Robusta coffee increased by 2.7%.