Arabica Coffee Prices Decline Due to Pressures from Brazil's Coffee Harvest

Coffee Price Movements: December arabica coffee prices fell by 1.44%, while November ICE robusta coffee prices increased by 0.86% due to mixed market conditions.

Brazil's Coffee Harvest Impact: The completion of Brazil's coffee harvest, particularly in the Cooxupe cooperative, has pressured arabica prices, with reports indicating that 99% of the overall harvest is complete.

Supply Concerns and Inventory Levels: Tighter inventories have supported coffee prices, with ICE robusta coffee inventories at a one-month low and arabica inventories at a 1.25-year low, amid concerns over weather conditions affecting crops.

Global Production Forecasts: The USDA projects a slight increase in global coffee production for 2025/26, but also anticipates a growing deficit in arabica coffee, highlighting ongoing supply challenges.