New York, Sept 14 — Arabica coffee futures experienced a significant surge in New York, driven by ongoing dryness in Brazil, a major coffee producer, which has heightened fears of a potential crop failure.
The most-active Arabica futures contract soared 4% to settle at $2.5945 per pound, marking the highest closing price since 2011.
Climatempo meteorologist Dayane Figueiredo reported that temperatures in key coffee-producing regions of Brazil are expected to remain high through the weekend. This weather pattern raises concerns about potential damage to coffee trees that are currently in their flowering phase, a critical period that will influence the volume of beans harvested in the coming year.
Additionally, crops in Minas Gerais, Brazil’s leading coffee-growing state, are facing challenges from soot deposited by nearby fires. While there have been no direct reports of coffee trees being harmed by the fires themselves, the proximity of the fires poses a risk to the developing coffee buds.
“These are new and unknown elements,” noted Carlos Santana Jr., a commercial director at Ecom Group, based in Brazil.
