Brazil’s Coffee Prices Surge as Strong Dollar and Futures Rally Drive Faster Sales
Brazil’s spot coffee market showed strong momentum this week, supported by rising international futures prices and a stronger U.S. dollar. The growing number of sellers helped create a more active trading environment, as higher prices encouraged sales. Many producers took advantage of this favorable moment to boost cash flow and manage trade flows across the harvest season.
However, sharp volatility in the futures market continues to challenge both traders and growers. Exporters are leveraging the high coffee futures prices to offer better payments to producers while reducing premiums—expanding their purchasing margins and attracting more foreign demand.
In southern Minas Gerais, the price for a 60-kg bag of Good Cup Arabica rose from 2,240 to 2,340 reals. The new crop scheduled for delivery in September 2026 is now trading around 2,050 reals per bag, up more than 70 reals this week. Fine Cup Arabica also saw strong demand, averaging 2,430 reals per bag—nearly 100 reals higher than the previous week. Lower-screen Arabica beans saw more modest gains but maintained strong interest from domestic roasters and grinders, serving as a cost-effective alternative for blends.
Robusta coffee prices have also continued to recover after a slight dip. In Espírito Santo, Robusta was trading around 1,410 reals per bag—up 20 reals from last week—with most of the activity focused on domestic demand.
Brazilian producers are keeping a close eye on weather conditions and early signs of potential yields for the next coffee crop. Recent rainfall is expected to stimulate new flowering in the coming weeks. Beyond the weather, ongoing trade negotiations between Brazil and the United States over import tariffs are also being closely monitored. Optimism has grown on expectations that Brazilian coffee might receive an exemption, which has lifted market sentiment.
Farmers are aware of this positive momentum. Many are proceeding cautiously—slowing down sales slightly while taking advantage of the recent rise in futures prices and exchange rates to strengthen their cash positions.
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