Futures prices for arabica fell this week. Traders now expect Brazil’s harvest to exceed earlier forecasts.
Dry weather in the spring raised fears of a short crop. Rains in September eased those fears. Growers report better cherry set in several regions.
What it means for specialty
Specialty lots trade on premiums over the futures price. Those premiums stayed firm this week. Buyers still compete for high-scoring lots.
Roasters should not expect cheaper bags on the shelf soon. Contracts are priced weeks ahead. Freight and labour costs also remain high.
What to watch
Watch the pace of harvest over the next month. A wet spell during picking can cut quality. Watch the exchange rate between the Brazilian real and the dollar too. A weaker real pushes farmers to sell.
This is a market report, not advice. Check live prices before you buy.
