2025.10.2314:48:41UTC+00Arabica Coffee Prices Surge Past $4.30

Arabica coffee futures have continued their upward trajectory, exceeding $4.30 per pound and approaching the record levels set in February. Since August, prices have risen by over 50% due to increasing concerns about global supply constraints. Key coffee-producing areas in Brazil, the world's largest coffee producer, are experiencing severe drought conditions attributed to climate change. Local farmers report that irregular rainfall during the spring, especially in regions like Minas Gerais, has reached its lowest levels in four years as of October 20, threatening both coffee flowering and overall productivity. Coffee cultivation, regardless of the variety, depends on consistent rainfall, with Arabica being particularly vulnerable to high temperatures. Brazil has faced drought conditions annually since 2020, leading to a situation where global coffee demand surpasses supply. Consequently, prices are expected to rise as temperatures continue to climb. Additionally, ongoing tensions between the United States and Brazil have heightened concerns, as traders closely watch the US-Brazil trade discussions regarding a possible revision to the 50% tariffs on Brazilian coffee.