
December arabica coffee (KCZ25) today is up +6.15 (+1.49%), and November ICE robusta coffee (RMX25) is up +115 (+2.49%).
Coffee prices extended this week's rally today to 5-week highs. Coffee prices have support from shrinking ICE coffee inventories. The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories. ICE-monitored arabica inventories fell to a 19-month low of 467,110 bags last Friday, and ICE robusta coffee inventories fell to a 3-month low of 6,141 lots today. American buyers are voiding new contracts for purchases of Brazilian coffee beans due to the 50% tariffs imposed on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.