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Barchart
Barchart
Rich Asplund

Coffee Prices Climb on Tight Supplies and Vietnam Weather Concerns

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.

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