Rising Dollar Triggers Significant Liquidation in Coffee Futures

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As of today, September arabica coffee prices (KCU25) decreased by $3.55 (1.15%), while September ICE robusta coffee (RMU25) fell by $136 (3.97%). The decline in prices comes after arabica reached a three-week high due to increased dryness in Brazil and a stronger U.S. dollar, which rose to a 3.5-week high.

Brazil’s Cooxupe coffee co-op reported that its harvest was 49.3% completed as of July 11, ahead of last year’s 66%. Despite the higher harvest rate, coffee prices are under pressure from increased ICE-monitored inventories, with robusta coffee inventories hitting a 10-month high of 5,611 lots. The USDA projects Brazil’s 2025/26 coffee production will increase by 0.5% year-over-year to 65 million bags, while Vietnam’s production is projected to drop by 20% year-over-year to 1.472 million metric tons.

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