Coffee futures fell on Friday, extending the previous session's losses, as forecasts for rain in Brazil and Vietnam eased supply concerns. May arabica coffee closed down 2.75 cents (0.71 per cent), while May robusta dropped $74 (1.36 per cent). Meteorologists predict showers in Brazil next week, improving conditions in key arabica-growing regions. Meanwhile, Vietnam, the world's top robusta producer, is also expecting rainfall, further pressuring prices. February coffee exports from Vietnam rose 6.6 per cent year-on-year to 169,000 metric tons. Despite recent declines, supply concerns persist. Brazil's 2025/26 coffee crop is forecast to shrink by 4.4 per cent to a three-year low of 51.81 million bags. Additionally, Brazil's January green coffee exports fell 1.6 per cent year-on-year, while Colombia continues to recover from drought linked to El Niño. Robusta prices remain underpinned by lower production in Vietnam, which saw a 20 per cent decline in the 2023/24 season. The USDA expects global coffee ending stocks to hit a 25-year low in 2024/25, keeping long-term supply risks in focus. Attribution: Nasdaq Subediting: M. S. Salama
