Arabica Coffee at Over 2-Month Lows

Arabica coffee futures traded around $2.8 per pound, their lowest level since June, pressured by the strong pace of shipments from Brazil’s recently harvested crop and prospects for greater availability next year. Brazilian green coffee exports remained strong in early September, following a record high for the month of August, with shipments of the bean increasing by more than 50%, according to data from the Foreign Trade Secretariat (Secex). Earlier, Cecafe reported that Brazil’s total coffee exports jumped 31% year-on-year in August to 4.155 million bags, a record high for the month. Meanwhile, Climatempo reported that the main Arabica-producing region of Minas Gerais received 59.4 mm of rain (1,212% of the historical average) last week, a bearish factor that strongly favors the initial development of the next crop.