East African coffee exporters to gain as Brazil's output drops

East African coffee producers are poised to reap even greater rewards as Brazil, the world's largest coffee supplier, faces a worsening drought that is set to further slash its output. With the global supply tightening, demand for East African coffee, particularly from Kenya, Uganda, and Ethiopia, is expected to soar, driving up both prices and export revenues across the region. Rainfall in Brazil has been consistently below average since April, damaging coffee trees during the critical flowering stage and reducing prospects for Brazil's 2025/26 arabica coffee crop. In Kenya, coffee prices have risen steadily since the auction resumed last month following a brief recess. A 50-kilogramme bag of Kenyan coffee fetched $256 at the latest sale, up from $241 at previous auctions, according to market data. Inventories monitored by ICE have also seen declines, with arabica coffee stocks dropping to a four- month low of 795,874 bags on October 3, while robusta coffee stocks hit a 4-3/4 ...