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Barchart

Rich Asplund

Coffee Gains on Below-Normal Brazil Rain and Brazilian Real Strength

Brazil Ice USDA Somar Meteorologia Vietnam the International Coffee Organization Volcafe

March arabica coffee (KCH25) today is up +5.05 (+1.58%), and March ICE robusta coffee (RMH25) is up +83 (+1.67%).

Coffee prices today are posting moderate gains on below-normal rainfall in Brazil and strength in the Brazilian real. Somar Meteorologia reported today that Brazil's biggest arabica coffee growing area of Minas Gerais received 62.5 mm of rain last week, or 86% of the historical average. Also, the Brazilian real (^USDBRL) today rose to a 2-week high against the dollar. The stronger real discourages export selling by Brazil's coffee producers.

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