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MILAN – Adverse weather in Brazil once again pushed coffee prices sharply higher yesterday. Both markets rose again following weather updates from the coffee belt. Specifically, Sucden Financial Ltd reported that a severe hailstorm in the Minas Gerais region may have damaged some of Brazil’s coffee crops.
The heavy rain hit the municipalities of São Sebastião do Paraíso, Jacui, Guaxupé, Guaranésia, Arceburgo, Monte Santos de Minas, Itamogi, Muzambinho, Cabo Verde, Monte Belo, Nova Resende, Bom Jesus da Penha, São Pedro da União, Alpinópolis and Passos, reports Notícias Agrícolas. Jonas Leme Ferraresso, an agronomist and coffee-growing consultant quoted by the same source, explained that this climatic event is not common in the middle of winter.
“Hail is more common from September to November, because these months have the expected climatic conditions and are more conducive to the formation of the event,” he added.
In New York, the main contract soared to an intraday high of 306 cents, to settle at 301.70 cents— up 1.4% from Friday.
Even greater gains were seen in London, where the contract for September delivery appreciated by $130 (up 4%), ending at $3,358.
An excessive short position by funds in Robusta coffee could exacerbate any short-covering rally in robusta coffee futures. In fact, the latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector increase their net short position by 257.65% over the week of trade leading up to Tuesday 22nd July 2025, to register a new net short position of 4,628 lots, or 771,333 bags, the most in two years.
The latest Commitment of Traders report from the New York Arabica market has seen the Non-Commercial Speculative sector increase their net long position by 3.62% during the week of trade leading up to Tuesday 22nd July 2025, to register a new long position of 17,001 lots.
In the same report, the shorter term in Nature Managed Money Fund increased their net long position by 4.74% to register a new long position at 22,843 lots.
The longer term in nature, Index Fund sector of this market marginally increased their net long position by 0.07% to register a new net-long position of 33,260 Lots on the day.
