Arabica coffee futures extend slide near $3.1/lb on Brazil supply outlook

Arabica coffee futures extended their decline, trading around $3.1 per pound, the lowest level since August 6, amid the prospect of increased coffee supply in Brazil.

More than 90% of the harvest has now been completed, helped by drier weather, with Brazil heading for a record crop of around 75 million bags.

The prospect of additional supply is particularly relevant against a backdrop of dwindling inventories, potentially easing some of the tightness in the market.

Reports that some Brazilian warehouses are nearing capacity also pressured prices, as limited storage space could force farmers to sell more beans.

Still, erratic weather and climate risks continue to raise concerns over next year’s crop.

Fears of a potentially strong El Niño persisted, as the weather pattern could delay rainfall during the critical September-October flowering period.