Robusta coffee prices surged to an all-time high on Wednesday due to fears over global crop damage. Adverse weather conditions in Brazil and Vietnam are threatening coffee yields. The Brazilian real’s drop led to increased export activity, while forecasts of frost in Brazil could harm coffee trees.
Arabica coffee, despite an early gain, closed unchanged after the real’s decline affected Brazilian exports. The drought in Brazil and Vietnam is exacerbating supply concerns.
In Vietnam, reduced rainfall has drastically lowered robusta production forecasts, leading to a potential global deficit. Coffee exports from Vietnam have also declined significantly. Meanwhile, Brazil’s coffee exports have surged, impacting arabica prices.
Overall, increased coffee inventories and rising global production projections may put downward pressure on prices despite current market strains.