Coffee Hits 7-week High

Arabica coffee futures traded above $3.10 per pound, holding near their highest since late August, amid concerns over tight inventories and weather-related risks in top producer Brazil. Despite a strong 2026 harvest and ample coffee stocks in Brazil’s producing regions, quality concerns persist, while inventories on international exchanges remain critically low. Certified arabica coffee stocks stood at approximately 240,000 bags in the latest report, their lowest level in nearly 27 years. Operators remained concerned that Brazilian shipments may not reach ICE-certified warehouses before the December contract expires. A firmer Brazilian real has provided additional support by reducing producers’ incentives to sell. Meanwhile, weather conditions across key regions continued to be closely monitored, with a strengthening El Niño towards late 2026 and early 2027 posing risks to rainfall patterns and crop development.

Coffee increased to 317.85 USd/Lbs, the highest since August 2026. Over the past 4 weeks, Coffee gained 14.7%, and in the last 12 months, it decreased 23.34%.

Arabica coffee futures rose to nearly $3.10 per pound, their highest level since early September, amid concerns over near-term supply and uncertainty surrounding Brazil’s next harvest. Traders are increasingly worried that coffee shipments from top grower Brazil may not reach ICE warehouses before the December contract expires. Certified stocks remain critically low at 238,976 bags, close to last month’s 27-year low of 217,646 bags. Against this backdrop, market participants are closely monitoring the pace of Brazilian coffee sales and exporters’ willingness to release and ship supplies, as delays could prolong tight market conditions. Meanwhile, attention was also on the 2027 harvest, with an expected strengthening of El Niño towards the end of the year and into early 2027 raising concerns over rainfall patterns and crop development. Weather conditions during key growth stages, particularly flowering and fruit set, will be crucial to the outlook for Brazilian production.