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On Tuesday, December arabica coffee (KCZ25) closed down $3.05 (-0.79%), while November ICE robusta coffee (RMX25) fell $0.59 (-1.33%). Coffee prices reversed early gains, influenced by a stronger dollar and profit-taking. Arabica futures dropped from a four-month high.
Brazil’s coffee-growing regions are experiencing excessive dryness, raising crop concerns. The arabica coffee inventories monitored by ICE fell to a 16-month low of 685,945 bags. Additionally, Brazil’s crop forecasting agency, Conab, reduced its 2025 arabica coffee crop estimate by 4.9% to 35.2 million bags.
Global July coffee exports decreased by 1.6% year-on-year to 11.6 million bags, with Brazil’s unroasted coffee exports down 20.4% year-on-year to 161,000 MT. Meanwhile, Vietnam’s coffee production for the 2023/24 crop year is down 20% year-on-year to 1.472 million metric tons, the lowest in four years.
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