Cold weather affecting production in Brazil, Arabica coffee beans reach highest point in two months.

New York Arabica coffee bean futures prices rose to the highest level in two months, as the market worried that multiple rounds of low temperatures and light frost in Brazil's main producing region could suppress coffee production. On Tuesday, the most active futures contract prices rose by as much as 2.6%. Prices have been rising for the fifth consecutive trading day and are set to set the longest streak of increases since April. McDougall Global View analyst Michael McDougall stated that due to the impact of adverse weather, coffee production in Brazil this year may be lower than expected. He pointed out, "It is worrying not only about this year's coffee harvest, but also the harvest of 2026, which may be limited, and the recent cold weather has caused an early flowering period." According to Harry Howard, a soft commodity broker at Sucden Financial, the recent price rebound is mainly due to Brazil's export volume being lower than expected over the past few days. Additionally, the frosty weather in Brazil's major coffee growing regions (Minas Gerais and So Paulo) over the weekend also triggered some short covering operations. However, he added that this rebound "may have lost momentum" as trading volumes have dropped significantly over the past week. According to a survey by the Coffee Trading Academy, total production of Arabica and Robusta coffee in Brazil for the 2025-2026 season is estimated to reach 63.9 million bags (each bag weighing 60 kilograms), a 2.1% decrease from the previous year.