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Barchart
Barchart
Rich Asplund

El Niño Fears Spark Short Covering in Coffee Futures

July arabica coffee (KCN26) on Thursday closed up +5.10 (+1.90%), and July ICE robusta coffee (RMN26) closed up +71 (+2.13%).

Coffee prices settled higher on Thursday as concerns that an El Niño weather pattern could hurt Brazil's coffee crop next year sparked short covering in coffee futures. Coffee trade Commercial said the El Niño weather pattern may delay rains in Brazil this September and October, when tree flowering normally occurs, hurting Brazil's 2026/27 coffee crop. The US National Oceanic and Atmospheric Administration (NOAA) estimates a 82% probability that El Niño conditions will emerge between May and July and persist through the end of the year, with a 67% chance of a "Super El Niño."

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