September arabica coffee (KCU24) on Tuesday closed down -6.95 (-2.94%), and July ICE robusta coffee (RMN24) closed down -60 (-1.35%).
Coffee prices Tuesday closed sharply lower after updated weather forecasts called for rain next week in Brazil's coffee-growing regions, easing drought concerns and fueling long liquidation in coffee futures. Coffee prices Tuesday fell back after previously surging to 2-week highs on Monday due to concerns that drier-than-normal conditions would adversely affect Brazil's coffee crops. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received no rain last week for the third consecutive week. Minas Gerais accounts for about 30% of Brazil's arabica crop.
