Coffee Hits 7-week Low

Coffee decreased to 279.45 USd/Lbs, the lowest since March 2026. Over the past 4 weeks, Coffee lost 8.69%, and in the last 12 months, it decreased 26.07%.

Arabica coffee futures have traded below $3 per pound since late March, amid expectations that the next harvest will continue to develop well in top grower Brazil, improving supply prospects. Dry weather conditions prevail in the main producing regions between the Southeast and Bahia, although scattered rains are being reported, which should support crop growth by improving soil moisture and overall crop conditions. Dealers noted that farmers are holding back sales ahead of an expected bumper harvest, while also monitoring prices, exchange rates and margins. Meanwhile, the geopolitical turmoil continues to impact costs and logistical security, creating a climate of great uncertainty and increasing volatility. The International Coffee Organization (ICO) said recently that rising fertilizer prices linked to geopolitical tensions pose a risk of pushing up costs for coffee growers worldwide and could impact production.

Arabica coffee futures traded around $2.95 per pound, hovering at one-week highs, mainly supported by the Brazilian real's strength, a factor that reduces the country's export competitiveness and tends to limit external supply. Still, expectations for an ample crop this year from top grower Brazil continued to weigh. The market remains focused on weather conditions ahead of next month’s harvest, with crop development so far mostly favorable, reinforcing expectations of strong output. In Colombia, the world’s second-largest arabica producer, output fell 29% year-on-year to 754,000 tonnes in March due to heavy rainfall. Meanwhile, geopolitical tensions remained closely monitored due to their potential impact on logistics costs.