Arabica Coffee Prices Rise Due to Dry Weather in Brazil

Arabica coffee prices are rising due to dry weather conditions in Brazil, which threaten crop yields. Despite a mixed performance in coffee prices, reduced inventories and increased sales have been observed. Supply concerns are amplified by weather forecasts indicating prolonged drought in major producing regions.

Recently, arabica coffee prices have shown a notable increase, closing at a two-week high due to concerning weather conditions in Brazil. Specifically, the May arabica coffee futures closed up by 2.90%. The current dry and hot weather may adversely affect coffee crop yields, with Somar Meteorologia forecasting risks to crops just before the imminent harvest in May.

Overall, the coffee market is significantly influenced by varying weather conditions in Brazil and Vietnam, which affect both supply and pricing. As inventories dwindle, particularly for robusta coffee, and with fears of continued supply shortages, coffee prices remain supported despite occasional mixed signals. Due to the prolonged drought affecting key producers and the projected coffee deficits, the market outlook appears increasingly cautious.

Original Source: www.tradingview.com