
Daily Coffee Report 8/11/26
Daily coffee report

- Coffee
By: Alexis Rubinstein, Managing Editor - Coffee Network

CoffeeNetwork (New York) - As Brazil prepares to host COP, a groundbreaking Coffee Watch analysis reveals that from 2001 to 2023, Brazil’s coffee heartland lost more than 11 million hectares of forest, a footprint of destruction on the scale of Honduras. Within this vast footprint, at least 312,803 hectares were directly cleared for coffee.
This first-ever integrated mapping shows 737,000 hectares of forest loss inside coffee farms, 77% in the Cerrado and 20% in the Atlantic Forest.
Historical analysis of pre-2000 data also revealed that coffee was a top driver of Atlantic Forest deforestation, with less than 90% of it remaining today. The report links forest loss to drying trends across the coffee belt, and the rainfall losses to crop failures.
In 2014, rainfall fell up to 50% below normal in parts of Minas Gerais, the leading coffee-producing region of Brazil, and 8 of the last 10 years registered deficits. NASA SMAP data show soil moisture declines up to 25% over six years in top coffee-producing zones. A worrying trend in light of coffee’s need for soil moisture to grow.
These climate shocks are also hitting wallets. Landmark droughts in 2016–17, 2019–20 and 2023 slashed yields and contributed to over 40% price rises in 2023–24.
Modeling indicates up to two-thirds of Brazil’s suitable Arabica area could be lost by 2050.
Key findings:
“Coffee has driven massive deforestation in Brazil, not just in the last centuries but in the last decades, and it’s still destroying forests to this day,” said Etelle Higonnet, Director of Coffee Watch. “Brazil needs to reverse course urgently because this deforestation isn’t just a carbon and biodiversity disaster – it’s also killing rains and leading to crop failures. Rains are failing where coffee expands at the expense of forests. As a result, climate shocks are hitting wallets. Brazil’s coffee future is on the line.”
The report indicates that agroforestry zones (e.g., zona da mata) showed greater moisture stability even during droughts—yet less than 1% of Brazil's key coffee zones use agroforestry today. While there is a scalable resilience pathway, adoption is lagging.
Released alongside the Brazil coffee deforestation report, a new investigation from AidEnvironment and Coffee Watch reveals six fresh cases of potential EUDR non-compliance in Rondônia—where coffee was planted directly on land cleared after the European Union Deforestation Regulation’s (EUDR) 2020 cut-off date. As the second in a growing series of company deforestation risk profiles, the report will feed into a forthcoming EUDR Compliance Checker tool. It shows that deforestation risks now reach deep into the Amazon, far beyond Brazil’s traditional Coffee Belt—underscoring the urgent need for companies to be held accountable wherever coffee drives forest loss.
Alexis Rubinstein
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Daily coffee report


August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.


Daily coffee report

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