Coffee Prices Surge Amid Brazil's Drought
Update: 2025-12-31
Description
Coffee prices surge amid tight inventories and Brazils dry weather, with March arabica futures up 2.05% and robusta up 1.57%. Despite a stronger dollar, the market remains bullish. Brazils key arabica region received only 17% of average rainfall last week, exacerbating concerns about the crop. US buyers pulled back on Brazilian coffee earlier this year due to high tariffs, but low stocks persist. Conab increased its 2025 production forecast by 2.4%, while Vietnam expects a 6% jump in robusta production next year. Global signs are mixed, with a slight drop in exports and record production predicted for 2025-2026, but falling ending stocks. Weather remains a key factor in price fluctuations. Checkout Solipillow.com
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