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Barchart
Barchart
Rich Asplund

Arabica Coffee Settles Sharply Higher on Dryness in Brazil

Brazil Ice Vietnam Cecafe ICO USDA FAS

Dec arabica coffee (KCZ23) on Monday closed up +6.95 (+4.07%), and Jan ICE robusta coffee (RMF24) closed down -16 (-0.63%).

Coffee prices on Monday settled mixed.  Arabica coffee on Monday rallied sharply after the weekend rain forecast for Brazil failed to materialize.  Below-normal rain in Brazil could curb coffee yields and is supportive of prices.  Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 5.9 mm of rain in the past week, or 12% of the historical average.  Minas Gerais accounts for about 30% of Brazil's arabica crop.

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