Arabica coffee futures hover near June lows around $2.9/lb
Arabica coffee futures extended their decline to around $2.9 per pound, near the lowest since June. Brazil’s harvest is winding down with expectations for improved availability, while ICE inventories fell to 223,712 bags by September 3.
9 per pound, near the lowest level since June, as Brazil’s harvest winds down and availability is expected to improve. Brazil, the top grower, is on track for a record coffee harvest in 2026 after a strong biennial production cycle, expanded production areas and more favourable weather conditions. Even so, the global supply-demand balance remains tight and exposed to climate risks. ICE arabica coffee inventories kept falling and hit a 27-year low of 223,712 bags by September 3.
The onset of El Niño in the equatorial Pacific is also drawing closer scrutiny on Brazil’s 2027 coffee crop, with rainfall and temperature shifts in different regions of the country potentially affecting flowering, fruit set, bean filling and the uniformity of ripening.