Arabica Coffee Futures Drop

2025-09-17 14:56 By Luisa Carvalho 1 min. read

Arabica coffee futures slid over 4% to below $3.96 per pound, reacting from seven-month highs above $4.32 scaled on September 15, mainly due to profit-taking after strong gains recorded in recent days.

Nonetheless, tight stocks, a weak 2025 Brazilian harvest, erratic weather, and global trade disruptions—including a 50% US tariff—keep fundamentals supportive.

On the supply side, dry weather in Brazil's main producing regions, before the critical coffee flowering period, has been putting pressure on the market and is already raising concerns about the production potential for the 2026 harvest.

Meanwhile, US buyers are avoiding new contracts with Brazil, intensifying the supply squeeze.

Brazil, the world’s largest coffee producer and exporter, saw its exports of soluble (instant) coffee to the United States drop nearly 60% year-on-year in August, following the imposition of a 50% US trade tariff, according to a September 15 note from Brazil’s coffee industry association.



News Stream
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