Global Arabian coffee prices reached records on Monday (27), as farmers in Brazil, the largest producer, remain reluctant to sell due to uncertainties about the next crop and even higher prices hope.
Term sales of the 2025/26 coffee harvest in Brazil have been below average for this time of year, with only 12% sold so far, against 19% in the same period last year, according to sector data released in the last Friday (24). The long term average for the period is 21%.
Brazil produces almost half of the world’s arabic grains, a variety of high quality normally used in toasted and ground mixtures. The country went through one of the worst droughts in its history last year.
“The market has led to the expectations that last year’s severe drought has left coffee workers without vitality to produce a strong crop,” said Admisi, the agricultural giant’s brokerage arm Archer Daniels Midland.
Some operators, however, said recent visits to coffee regions in Brazil have shown that the crop is better than previously expected, thanks to the rains observed in recent months, which they say, they should persist.
Anyway, the futures of Arabica coffee on the ICE bag, used to precipitate physical coffee around the world, reached a record of $ 3.5555 per pound earlier, raising the earnings of the year to almost 10%.
They closed up 0.5%, at $ 3,492 per pound, while the futures of robust coffee, a usually cheaper variety used mainly to make instant coffee, fell 1.5%to $ 5,460 a ton .
In the case of other traded soft commodities, gross sugar rose 0.8%to 19.17 cents per pound, while white sugar earned 1.8%to $ 507 a ton.
Cocoa in London fell 1.4%to 9,055 pounds per ton, while cocoa in New York fell 1.7%to $ 11,219 per ton.
