Arabica Coffee Futures Trade Near 1-Month High

Arabica coffee futures traded near $2.95 per pound, remaining near its highest levels since early September, as strong exports helped offset concerns over weather conditions and their impact on supply. The 2026 harvest from the world's top coffee producer, Brazil, is seen at record numbers, with supply estimated at 67.6 million processed bags, up 19.6% from the previous year. Additionally, exports from Brazil in September jumped to its highest level of shippping volume in 20 months, reinforcing expectations of ample supplies. Meanwhile, Hedgepoint Global Markets estimates a global surplus of 8.9 million bags for the current crop year. Still, concerns over the potential impact of El Niño continue to underpin prices. With rains returning to most producing regions, growers are entering the fertilizer application period for the 2027/28 crop, although producers currently have reduced purchasing power over the input.