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Barchart
Barchart
Rich Asplund

Arabica Coffee Settles Higher on Tight Supplies and Brazil Real Strength

March arabica coffee (KCH24) on Tuesday closed up +4.05 (+2.40%), and Jan ICE robusta coffee (RMF24) closed down -7 (-0.27%).

Coffee prices on Tuesday settled mixed, with Mar arabica climbing to a 1-1/2 week high and nearest-futures (Z23) climbing to a 5-1/4 month high.  Shrinking ICE coffee inventories are bullish for coffee prices factor as ICE-monitored arabica coffee inventories on November 16 fell to a 24-year low of 289,699 bags.  Meanwhile, on Tuesday, ICE-monitored robusta coffee inventories were at 4,181 lots, moderately above the record low of 3,374 lots posted on August 31.  

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