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Rich Asplund

Arabica Coffee Posts a 2-Week High on Brazil Crop Concerns

Brazil Ice Somar Meteorologia Conab Vietnam the USDA FAS USDA Vietnam General Statistics Office Volcafe

May arabica coffee (KCK25) Thursday closed up +1.10 (+0.28%), and May ICE robusta coffee (RMK25) closed down -30 (-0.548%).

Coffee prices Thursday settled mixed, with arabica climbing to a 2-week high. Insufficient rain in Brazil threatens coffee crops and is bullish for prices. Somar Meteorologia reported Monday that Brazil's biggest arabica coffee growing area of Minas Gerais received 30.8 mm of rain in the week ended March 15, or 71% of the historical average. Arabica coffee added to its gain Thursday after Cooxupe, Brazil's largest arabica coffee co-operative, said high temperatures and below-normal rainfall last month in Brazil should negatively affect coffee yields this year.

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