Arabica Coffee Futures at Near 2-Month High

Arabica coffee futures traded above $3.10 per pound, holding near their highest since late August, amid concerns over tight inventories and weather-related risks in top producer Brazil. Although Brazil recorded a strong harvest in 2026 and retains substantial coffee stocks in producing regions, quality concerns persist, while inventories in international exchanges.remain at critically low levels. Traders remained concerned that Brazilian shipments may not reach ICE-certified warehouses before the December contract expires, potentially keeping certified stocks under pressure. Looking ahead, the prospect of a strengthening El Niño towards the end of 2026 and into early 2027 has raised concerns over rainfall patterns and the development of the next crop. A firmer Brazilian real provided additional support by reducing producers’ incentives to sell.