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Coffee Surges on Persistent Crop Concerns in Top Supplier Brazil

  • Analysts see limited rebound for Brazilian arabica output
  • Cotton advances as certified, world stockpiles shrink
Updated on

Arabica coffee futures snapped a three-session slump on revived concerns about limited world supplies due to adverse conditions in top grower Brazil.

Drought and frosts that hurt plants during the past year are continuing to affect the outlook, while recent heavy rains have also triggered crop damaging fungus. That’s on top of severe pruning by growers, in some cases bringing the trees all the way down to a stump, which may delay crop recovery by one to two years.