FX.co ★ Arabica Coffee Futures Try to Recover from Recent Falls

Arabica coffee futures have been fluctuating around $3.60 per pound as they attempt to recover from last week’s significant decline. Prices have experienced volatility due to a mix of factors, such as concerns about the crop conditions in Brazil and geopolitical developments. These developments include the US apprehension of Nicolás Maduro, which has heightened tensions among key coffee-producing nations. Analysts warn that Venezuela’s coffee industry will require substantial time to revive, as current production is only a small fraction of its 19th-century peak levels. In Brazil, the top global coffee producer, the anticipated return of rain is a welcome sign for crop growth during this crucial phase. Trade experts maintain a positive outlook for Brazil’s 2026/27 coffee harvest, with projections from Safras & Mercado and StoneX indicating a robust yield of approximately 71 million bags, supported by favorable weather patterns despite recent periods of dryness.