Coffee slips 5% from local high amid favorable weather in Brazil📉

2:43 PM 17 September 2025

Futures on Arabica coffee on ICE (COFFEE) drop almost 5% today amid Brazil weather change, falling from local high.

  • Brazil forecasts point to more rain next week, easing dryness fears.

    • But NOAA warns of a 71% chance of La Niña (Oct–Dec) → risk of drought and damage to the 2026/27 crop.

  • Brazil harvest revisions (HedgePoint):

    • Total 2025/26 crop: 64.7M bags (+0.7% YoY).

    • Arabica: cut to 37.7M bags (-13.3% YoY, down from 39.6M est.).

    • Robusta: lifted to 27M bags (+30% YoY).

  • Regional contrasts:

    • Arabica heartlands (Minas Gerais, SĂŁo Paulo): below-average rainfall in key stages hurt yields and quality.

    • Robusta regions (EspĂ­rito Santo, Bahia): favorable weather + grower investment → stronger-than-expected yields.

  • Longer-term outlook:

    • Arabica 2026/27: still uncertain; April rains hurt current crop but improved tree health for the next cycle.

    • Robusta 2026/27: early flowering (since August) shows positive signs so far.

COFFE (D1 interval)

 

Source: xStation5

 

 

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