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Barchart
Barchart
Rich Asplund

Coffee Prices Jump as Global Weather Concerns Persist

December arabica coffee (KCZ24) today is up +11.70 (+4.67%), and November ICE robusta coffee (RMX24) is up +201 (+3.97%).

Coffee prices today are sharply higher due to concerns that adverse global weather will lead to small coffee production.  Brazil has been facing the driest weather since 1981, according to the natural disaster monitoring center Cemaden.  Rainfall in Brazil has consistently been below normal since April, damaging coffee trees during the all-important flowering stage and reducing the prospects for Brazil's 2025/26 arabica coffee crop.  Somar Meteorologia reported today that Brazil's Minas Gerais region received 9.8 mm of rain over the past week, or only 62% of the historical average.  Minas Gerais accounts for about 30% of Brazil's arabica crop.  Also, robusta coffee has support after heavy rain from typhoon Yagi last week flooded Vietnam's robusta coffee fields and may curb the country's coffee output.

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