FX.co ★ Arabica Coffee Futures at Near 1-Month High

Arabica coffee futures have continued their upward trajectory, reaching approximately $3.80 per pound, marking the highest price since December 12. This increase is supported by the strength of the Brazilian real, which discourages Brazilian coffee producers from making export sales, consequently tightening the supply. Although certified stockpiles have risen to a 2.5-month peak of 457,317 bags as of January 6, they remain at historically low levels. The prices are additionally bolstered by concerns over escalating geopolitical tensions, particularly following the United States’ actions against Nicolás Maduro, an event that has sparked strong backlash from Colombia and Brazil—two leading Arabica coffee producers. In the meantime, market observers are keenly assessing weather patterns in Brazil, the foremost producer of Arabica coffee, as the current crop progresses through its cherry growth phase.