On Thursday, September arabica coffee prices rose by 2.16%, closing up at +6.90, while September ICE robusta coffee increased by 3.84%, closing up +151. This follows earlier gains of 1.41% for arabica and 5.53% for robusta on Wednesday.
The surge in coffee prices is attributed to light frost in Brazil’s Cerrado Mineiro region, a crucial arabica coffee area, despite early damage assessments indicating minimal impact. Additionally, Brazil’s July robusta exports fell by 49% year-on-year, contributing to the robusta’s rise to a two-month high.
ICE arabica inventories dropped to a 1.25-year low of 726,661 bags, while robusta stocks fell to a two-week low of 6,928 lots. Meanwhile, the USDA projected a slight increase in Brazil’s coffee production for the 2025/26 marketing year, estimating 65 million bags.
