FX.co ★ Arabica Coffee Futures Hover Around 4-Month Lows

Arabica coffee futures are currently trading around $3.40 per pound, approaching their lowest levels since mid-August, as supply conditions show signs of improvement. Analysts attribute the ongoing price pressure to the influx of newly harvested coffee beans, coupled with near-perfect weather in Brazil, the world's leading coffee producer, which boosts expectations for next year's harvest. According to a report by Itaú BBA, although rainfall in some coffee-producing areas has been inconsistent, conditions in the Cerrado region improved during November and December. The climate forecast for late December and early 2026 is favorable, as the coffee plants enter the flowering stage, with predicted rainfall creating ideal growth conditions. Nevertheless, low stock levels and increasing demand are preventing a more substantial decline in prices.