Coffee Futures Surge as Brazil Faces Drought, Typhoon Strikes Vietnam
Brazil’s Dry Weather and Vietnam’s Typhoon Impact Coffee Prices
Coffee futures for both arabica and robusta varieties surged after adverse weather conditions hit major coffee-producing countries. Brazil, the top exporter of arabica coffee, is facing persistent dryness, while a typhoon battered key robusta-growing areas in Vietnam. These weather events have raised concerns about global coffee supplies and pushed prices higher.Robusta futures in London saw an almost 3% increase before slightly paring gains. Meanwhile, arabica futures climbed as much as 3.8% in New York. This jump in prices reflects the uncertainty surrounding potential damage to coffee crops in both countries.
Vietnam’s Coffee Regions Affected by Typhoon Yagi
Typhoon Yagi brought heavy rain and winds to parts of Vietnam, the world’s leading exporter of robusta coffee. The storm hit the Central Highlands, the country’s main coffee-growing region, where the full extent of the damage to coffee fields remains unclear, according to Vietnam's agriculture department.Analysts from ADM Investor Services noted that the typhoon likely affected smaller arabica-growing areas in the northern region of Vietnam, potentially causing some coffee cherries to fall from the trees. Although the exact impact on production is not yet known, the damage could further strain global coffee supplies.
Dryness in Brazil Threatens Arabica Flowering Period
Brazil, the largest supplier of arabica coffee, is facing rising temperatures and a lack of rain, which are raising concerns about the upcoming harvest. Meteorologist Nadiara Pereira from Climatempo warned that most coffee-growing areas in Brazil will remain dry for the rest of the week, with some regions expected to reach record-high temperatures.This weather pattern is particularly worrisome because Brazil’s coffee trees are currently in their flowering period, a crucial stage that determines the size of next year’s crop. Extended dryness and heat during this period could significantly reduce the number of beans produced, further tightening global supplies.