On Wednesday, coffee prices settled higher as Brazil encountered a tightness in supply, extending this week’s rally.
US coffee futures for March delivery soared by 3.43% to $2.71 per pound on November 13’s Asian afternoon session.
Additionally, the arabica variety registered a seven-week high, while the robusta posted a three-week record, contributing to the current gains.
In hopes of higher prices, coffee farmers in Brazil are holding their supply from the market. For this reason, the availability of the commodity in the cash market reduced and sent prices upward.
Moreover, Meteorologist Climatempo forecasts hotter and drier weather for Minas Gerais in the next 10 days. Subsequently, the excessive heat in the country’s biggest arabica-producing region underpins the cost of the variety.
Prior to this, the weather forecasting center reported a short period of rain in the middle of the week in the area in Brazil. However, concerns regarding drought conditions in the country started to appear.
At the same time, rainfall in Brasília has consistently remained below average since April. Consequently, the problem may generate longer-term crop damage, supporting coffee prices.
Similarly, the extreme weather in Brazil impacted trees during a significant flowering stage, which lowered the country’s arabica crop outlook for 2025/26.
Robusta Coffee Gains on Low Exports and Heavy Rain
Based on reports, Vietnam recorded falling exports and heavy shower activities, which prompted tighter supplies that propelled robusta coffee prices.
In connection, Hanoi’s General Department of Customs indicated that October exports dropped by -11.60% month-over-month to 45,412.00 metric tons (MT).
Likewise, the January to October coffee shipments in Vietnam plunged by -11.10% year-over-year to 1.15 million metric tons (MMT).
On the other hand, concerns about increased rains in the country support robusta prices. The weather in the world’s top producer of the variety could lead to flooding crop fields, which would delay the harvest.
