December arabica coffee (KCZ24) Wednesday closed up +1.30 (+0.49%), and November ICE robusta coffee (RMX24) closed up +134 (+2.52%).
Coffee prices Wednesday extended this week's rally to 1-week highs on concern that adverse weather in key coffee-producing countries may curb coffee production. Brazil has been facing the driest weather since 1981, according to the natural disaster monitoring center Cemaden. Rainfall in Brazil has consistently been below average since April, damaging coffee trees during the all-important flowering stage and reducing the prospects for Brazil's 2025/26 arabica coffee crop. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 9.8 mm of rain over the past week, or only 62% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop. Also, robusta coffee is supported after heavy rain from typhoon Yagi last week that flooded Vietnam's robusta coffee fields, which may curb the country's coffee output. Vietnam is the world's largest robusta coffee producer.
