Mild weather boosts Brazil's production outlook, Arabica coffee prices continue to fall

Arabica coffee futures prices have fallen for the third consecutive day and are expected to reach their lowest closing price since June 4th, as the market optimistically believes that milder winter weather will help Brazil, the world's largest coffee producer, to harvest coffee earlier. The most active Arabica coffee futures contract in New York fell by 1.5%. The cheaper variety of Robusta coffee futures for instant coffee rose in the London market. According to a report by Somar Meteorologia meteorologist Nadiara Pereira, the coldest areas between Sao Paulo and the southern part of Minas Gerais state are expected to have a minimum temperature slightly below 10 degrees Celsius in the latter part of this week, with no risk of extreme cold weather. The report predicts localized rainfall between the states of Espirito Santo and southern Bahia. Hedgepoint Global Market analyst Laleska Moda stated, "Brazil's winter often brings more volatility to the market, so we may see more fluctuations in the coming months. Although current forecasts do not show the risk of frost, most models are more accurate in the short term, leading to continued market uncertainty and possibly resulting in higher prices."