Arabica Coffee Futures Hover Around 4-Month Lows

2025-12-22 14:12 By Luisa Carvalho 1 min. read

Arabica coffee futures traded around $3.45 per pound, hovering near their lowest levels since mid-August amid improving supply prospects.

Dealers cited continued pressure from newly harvested beans, while near-ideal weather in top producer Brazil is also supporting expectations for next year’s crop.

A report from Itaú BBA noted that the climate outlook for late December and early 2026 is positive, as crops are in the flowering stage and forecasted rains provide ideal conditions for this critical period of production.

Despite improving weather conditions, low inventories and stronger demand both domestic and external are keeping prices from falling sharply.

Brazilian production remains hampered by five years of climatic volatility, while the biennial cycle of the crop further restricts near-term supply growth.

Global output is anticipated to exceed consumption in 2026/2027, with a surplus of 7 million bags.



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