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Barchart
Rich Asplund

Arabica Coffee Prices Retreat on Brazil Coffee Crop Optimism

Ice Brazil USDA Vietnam

September arabica coffee (KCU25) Tuesday closed down -8.15 (-2.72%), and September ICE robusta coffee (RMU25) closed up +40 (+1.10%).

Coffee prices on Tuesday settled mixed.  Sep arabica coffee tumbled to a contract low on Tuesday, and the nearest-futures (N25) contract fell to a 6-3/4 month low.  Arabica coffee is under pressure as abundant rainfall in Brazil has eased dryness concerns and is positive for the country's coffee crops.  Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 5 mm of rain during the week ended June 28, which is 714% of the historical average.

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