Arabica Coffee Prices Surge Past $4.30

2025-10-23 14:48 By Luisa Carvalho 1 min. read

Arabica coffee futures extended their rally, climbing above $4.30 per pound and nearing the record high reached in February.

Prices have surged more than 50% since August amid growing concerns over global supply shortages.

Coffee-producing regions in the top producer Brazil have been undergoing an intense drought due to climate change.

According to local farmers, irregular spring rainfall, particularly in Minas Gerais, where levels through October 20 were the lowest in four years, is putting coffee flowering and productivity at risk.

Regardless of the variety, coffee production needs consistent rainfall and arabica is more sensitive to high temperatures.

The country has undergone droughts every year since 2020, resulting in global coffee demand outstripping supply.

Prices are likely to trend higher as temperatures increase.

Escalating tensions between the USare compounding worries as traders await US-Brazil trade talks on a potential revision to the 50% Brazilian coffee tariffs.



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