**Coffee Prices Decline Amid Growing Conditions**
December arabica coffee futures (KCZ26) fell by $4.20 (1.45%) and November ICE robusta coffee (RMX26) dropped by $0.51 (1.44%) on September 18, 2023. This downturn is driven by favorable growing conditions in major coffee-producing regions, including Brazil and Vietnam. In Brazil’s Minas Gerais region, 59.4 mm of rain was recorded in the week ending September 13, significantly above the historical average.
Additionally, Brazil’s coffee exports for August surged by 31% year-over-year to 4.155 million bags, setting a record for the month. The International Coffee Organization (ICO) projected a global coffee surplus for the first time in five years, with global production estimated at 183.6 million bags for the 2025/26 season, exceeding consumption at 180.6 million bags. Concerns about an upcoming El Niño event may further impact future coffee crops, particularly in Brazil.
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