Kenya's coffee prices rose to their highest level of the crop year in the latest auction, defying a global slump in coffee futures driven by improved weather in Brazil.

Kenyan arabica rose to $261 per 50-kilo bag this week, up from $251 at the previous sale, reflecting strong demand for the country's high-grade beans.

In contrast, December arabica futures in New York fell by 0.04 percent amid a broader decline, highlighting Kenya's sensitivity to global price shifts, as 95 percent of its coffee exports are sold abroad.

Robusta coffee prices declined further on Tuesday, reaching a two-month low as recent rainfall eased drought concerns.

Brazil's Minas Gerais, a key arabica-growing region, received 36.8 mm of rain last week--115 percent above the seasonal average--according to weather man.

The area contributes nearly 30 percent of Brazil's arabica output, and increased rainfall is expected to alleviate stress on coffee trees.

Below-average rainfall in Brazil since April has stressed coffee crops, impacting the 2025/26 arabica outlook.

In 2021, Kenya benefited from elevated global prices following a severe frost in Brazil that constrained supply.

Meanwhile, Kenya's government is advancing coffee sector reforms aimed at increasing farmer earnings by reducing intermediaries in the supply chain.