FX.co ★ Arabia Coffee Futures at Over 2-Month Low

Arabica coffee futures slipped toward $3 per pound, hitting their lowest level since late June, as expectations grew for increased supply from major producer Brazil. According to Safras & Mercado, Brazil’s 2026/27 coffee harvest was 97% complete as of August 26, with the Arabica crop 96% harvested, putting the country on track for a potential record output. In its quarterly report, Rabobank reiterated its forecast for a “very comfortable” global coffee balance in 2026/27, projecting a surplus of 8.9 million bags. Even so, the bank noted that harvest delays in Brazil and disruptions linked to the recent earthquake in Colombia are keeping Arabica supplies tight in the near term, with substantial stock replenishment unlikely before November. ICE-monitored Arabica inventories have continued to decline, falling to 223,976 bags as of August 31, the lowest level in 27 years.