Coffee futures prices pushed up by the weather in Brazil and Vietnam

MILAN – Coffee futures rose on Tuesday, 25 November. Prices were driven up by dryness concerns in Brazil’s main coffee-growing regions and forecasts of heavy rain in Vietnam’s highlands, which could once again hamper the harvesting.

The ICE Arabica March contract gained a further 1.8% to reach 383.30 cents. Meanwhile, the ICE Robusta January contract rose by 2.4% to close at $4,559.

We remind readers that tomorrow is Thanksgiving Day in the United States. Consequently, only the London market will be open, while the New York market will be closed.

According to reports by Climatempo, quoted by Escritório Carvalhaes, dry weather is expected to continue in Brazil’s central production areas at the end of the week, while instability is also predicted to decrease in Bahia and Espírito Santo.

A new cold front is expected to arrive in coastal areas at the beginning of next week, likely changing the weather significantly in inland south-eastern areas.

The bad weather is playing havoc In Vietnam coffee growing regions, but heavy and seasonally extended rains are forecast to soon start to dissipate.

According to I. & M. Smith, the domestic market is gearing up a notch albeit that farmers are for the most part well financed, lacking incentive in the prevailing conditions of the seasonally delayed harvest, to come to the market in any hurry, leading to a slow and measured pace of business.

Harvesting has also begun in Uganda, where production for the 2025/26 season is expected to be similar to last season’s. Estimates indicate this year’s crop could be around 6.7 million bags, of which 5.7 million being Robusta.