Arabica coffee futures jumped to a two-year high this week after an unexpected frost swept through key growing regions in Minas Gerais, Brazil’s largest coffee-producing state.

Growers reported damage to flowering trees across an estimated 15% of the region’s plantations, raising concerns about yields for the 2027 harvest.

Roasters and traders have moved to secure supply contracts early, pushing spot premiums higher across major consuming markets in Europe and North America.

Analysts cautioned that the full extent of the damage will not be clear for several weeks, but early estimates suggest this could be the most significant frost event since 2021.