Volcafe Cuts Brazil Arabica Coffee Outlook on Severe Drought.

Volcafe Ltd., a major coffee trader, has reduced its forecast for Brazil's arabica coffee production due to a severe drought. The country is expected to produce 34.4 million bags of arabica beans, down from a previous estimate of 45.4 million bags. This decrease in production is likely to lead to a global coffee deficit of 8.5 million bags in the 2025-26 season, causing arabica coffee futures to reach record highs. The drought has significantly impacted coffee trees in Brazil, leading to blossom failure and reduced crop yields, with implications for global coffee prices and market dynamics. [Extracted from the article]