Brazil’s Dry Weather Predictions Impact Coffee Market Prices

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On September 11, arabica coffee prices (KCU26) dropped by 1.74% to $5.80, while robusta coffee prices (RMU26) fell by 0.26% to $14. The decline follows forecasts of dry weather in Brazil’s coffee-growing regions, facilitating a quicker harvest.

Coffee market volatility is increasing due to reduced liquidity following two margin requirement hikes by the Intercontinental Exchange. Funds have boosted their long positions in ICE robusta coffee by 5,607 contracts to a net-long total of 44,195, the highest in over two years, further straining market stability.

As of July 1, the 2026/27 coffee harvest in Brazil was 52% complete, trailing the previous year’s 60% and the five-year average of 55%. Concerns about the impact of the El Niño weather pattern on future yields have also added upward pressure on prices.

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