Arabica coffee futures in Tokyo fell 3.6 percent amid signs that favorable weather will boost harvest in Brazil, the world's biggest grower. The drop was the biggest fluctuation of any commodity today.

Brazil's winter is nearly over and there's no damaging cold weather in sight, Meteorlogix LLC, a Lexington, Massachusetts- based forecaster said yesterday in a report.

"Weather is not a problem and production figures given by Brazil is causing any sense of tightness in supply to ease,'' said Toshimitsu Kawanabe, an analyst at Taiheiyo Bussan Co.

Arabica futures for July 2006 delivery have declined 12 percent since Aug. 12 when Brazil said its coffee harvest this year will total 33.3 million bags, up from an April forecast of 32.46 million bags. Next year's crop will increase 26 percent to 42 million bags, the country's farm ministry said.

Arabica coffee for delivery in July 2006 dropped 600 yen to close at 16,270 per 69-kilogram bag on the Tokyo Grain Exchange. In New York, Arabica futures for September delivery, the most active contract, fell 3 percent to 93.15 cents yesterday.

Mild-tasting Arabicas are preferred by specialty roasters such as Starbucks Corp. The more bitter Robusta beans, which are traded in London, are used by Nestle SA, Kraft Foods Inc. and other makers for instant coffee.

Robusta futures fell to their lowest since April 12 in early trading today on the Liffe. Robusta for November delivery, the most active contract, fell as much as $37, or 3.73 percent, to $955 a metric ton.

Frost

Japan is the third-largest coffee importer and has about 90,000 coffee and tea shops that sell almost $10 billion of beverages a year. The Tokyo Grain Exchange holds five daily sessions for Arabica coffee futures, where buy and sell orders are matched through an auction.

Coffee reached a record 24,820 yen per 69-kilogram bag on the Tokyo Grain Exchange on March 16, before the start of winter in Brazil, on concern frost would damage trees and reduce output. The Latin America country grows about a third of the world's Arabica, a milder coffee type favored by specialty roasters including Starbucks Corp.

A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.