Arabica coffee continues to decline, driven by expectations of increased supply volume.

New York Arabica coffee futures fell for the third consecutive day as the market anticipated increased supply from Brazil, the largest producer. The most active contract on Tuesday dropped 1.6% at one point, hitting a three-week low of around $3.54 per pound. Market expectations of increased supply from Brazil in the next season have put pressure on the prices of this high-quality coffee bean. According to a report from Hedgepoint Global Markets, Arabica coffee production in the country is forecasted to surge by 29% in the 2026-27 season.