{"id":283646,"date":"2026-02-06T09:07:24","date_gmt":"2026-02-06T09:07:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/283646\/"},"modified":"2026-02-06T09:07:24","modified_gmt":"2026-02-06T09:07:24","slug":"arabica-coffee-rises-on-technical-short-covering","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/283646\/","title":{"rendered":"Arabica Coffee Rises on Technical Short Covering"},"content":{"rendered":"<p>            <img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/01\/Cup20of20coffe20with20beans20on20the20side20by20Carol20La20Rosa20via20Shutterstock.jpg\" alt=\"Cup of coffe with beans on the side by Carol La Rosa via Shutterstock\" loading=\"lazy\"\/><\/p>\n<p>\n                    Cup of coffe with beans on the side by Carol La Rosa via Shutterstock\n                <\/p>\n<p>March arabica coffee (<a target=\"_blank\" href=\"https:\/\/www.barchart.com\/futures\/quotes\/KC*0\/overview\" rel=\"nofollow noopener\">KCH26<\/a>) on Monday closed up +1.00 (+0.30%), and March ICE robusta coffee (<a target=\"_blank\" href=\"https:\/\/www.barchart.com\/futures\/quotes\/RM*0\/overview\" rel=\"nofollow noopener\">RMH26<\/a>) closed down -84 (-2.04%).<\/p>\n<p>Coffee prices settled mixed on Monday, with robusta falling to a 4-week low. \u00a0Above-average rainfall in Brazil is positive for coffee yields but negative for prices. \u00a0Somar Meteorologia reported on Monday that Brazil&#8217;s largest arabica coffee-growing area, Minas Gerais, received 69.8 mm of rain during the week ended January 30, or 117% of the historical average.<\/p>\n<p>Some mild technical short covering lifted arabica coffee into positive territory on Monday after prices failed take out last Friday&#8217;s 5.5-month nearest-futures low. \u00a0Coffee prices have been under pressure over the past week amid forecasts of steady rains in Minas Gerais, Brazil&#8217;s main coffee-growing region.<\/p>\n<p>The outlook for ample coffee supplies is a bearish factor for prices. \u00a0On December 4, Conab, Brazil&#8217;s crop forecasting agency, raised its total Brazil 2025 coffee production estimate by 2.4% to 56.54 million bags, from a September estimate of 55.20 million bags. \u00a0<\/p>\n<p>Soaring coffee exports from Vietnam, the world&#8217;s largest robusta producer, are bearish for robusta prices. \u00a0Vietnam&#8217;s National Statistics Office reported on January 5 that Vietnam&#8217;s 2025 coffee exports jumped by +17.5% y\/y to 1.58 MMT. \u00a0<\/p>\n<p>Increased Vietnamese coffee supplies are negative for prices. \u00a0Vietnam&#8217;s 2025\/26 coffee production is projected to climb +6% y\/y to 1.76 MMT, or 29.4 million bags, a 4-year high. \u00a0Also, the Vietnam Coffee and Cocoa Association (Vicofa) said on October 24 that Vietnam&#8217;s coffee output in 2025\/26 will be 10% higher than the previous crop year if weather conditions remain favorable. \u00a0 Vietnam is the world&#8217;s largest producer of robusta coffee.<\/p>\n<p>The recovery in ICE coffee inventories is negative for prices. \u00a0ICE-monitored arabica inventories fell to a 1.75-year low of 396,513 bags on November 18, but recovered to a 3.25-month high of 461,829 bags on January 7. \u00a0Also, ICE robusta coffee inventories fell to a 13-month low of 4,012 lots on December 10 but recovered to a 2-month high of 4,662 lots last Monday.<\/p>\n<p>Shrinking Brazilian coffee exports are supportive of coffee prices. \u00a0Cecafe reported last Monday that Brazil&#8217;s total Dec green coffee exports fell -18.4% to 2.86 million bags, with arabica coffee exports down -10% y\/y to 2.6 million bags and robusta coffee exports down -61% y\/y to 222,147 bags.<\/p>\n<p>Below-average rainfall in Brazil, the world&#8217;s largest arabica producer, is supportive for coffee prices. \u00a0<\/p>\n<p>Signs of tighter global coffee supplies are supportive of prices, as the International Coffee Organization (ICO) on November 7 reported that global coffee exports for the current marketing year (Oct-Sep) fell -0.3% y\/y to 138.658 million bags.<\/p>\n<p>The USDA&#8217;s Foreign Agriculture Service (FAS) bi-annual report on December 18 projected that world coffee production in 2025\/26 will increase by +2.0% y\/y to a record 178.848 million bags, with a -4.7% decrease in arabica production to 95.515 million bags and a +10.9% increase in robusta production to 83.333 million bags. \u00a0FAS forecasted that Brazil&#8217;s 2025\/26 coffee production will decline by -3.1% y\/y to 63 million bags and that Vietnam&#8217;s 2025\/26 coffee output will rise by 6.2% y\/y to a 4-year high of 30.8 million bags. \u00a0FAS forecasts that 2025\/26 ending stocks will fall by -5.4% to 20.148 million bags from 21.307 million bags in 2024\/25.<br \/>\u00a0<\/p>\n<p>\n    On the date of publication,<\/p>\n<p>    <a target=\"_self\" href=\"https:\/\/www.barchart.com\/news\/authors\/5\/rich-asplund\" rel=\"nofollow noopener\">Rich Asplund<\/a><\/p>\n<p>            did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.<\/p>\n<p>    For more information please view the Barchart Disclosure Policy<\/p>\n<p>    <a target=\"_self\" href=\"https:\/\/www.barchart.com\/terms#disclosure\" rel=\"nofollow noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Cup of coffe with beans on the side by Carol La Rosa via Shutterstock March arabica coffee (KCH26)&hellip;\n","protected":false},"author":2,"featured_media":253221,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[246,61,60,44940,82],"class_list":{"0":"post-283646","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-environment","9":"tag-ie","10":"tag-ireland","11":"tag-n-a","12":"tag-science"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/283646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=283646"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/283646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/253221"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=283646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=283646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=283646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}