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Barchart
Barchart
Rich Asplund

Arabica Coffee Erases Early Gains as the Dollar Rallies

July arabica coffee (KCN26) today is down -2.70 (-0.97%), and July ICE robusta coffee (RMN26) is up +8 (+0.22%).

Coffee prices today fell from early highs and are trading mixed as a rally in the dollar index ($DXY) to a 13-month high has sparked long liquidation in coffee futures. Coffee prices have rallied sharply over the past week, hitting 5-week highs today, amid concerns that persistent rain in Brazil will delay the coffee harvest. Forecaster Vaisala said moderate to heavy rainfall is forecast across Brazil’s coffee-growing regions this week. Coffee prices also fell back from their best level after meteorologist Climatempo said that Brazil’s key coffee-growing regions are expected to see mostly dry weather next week.

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