May arabica coffee (KCK23) on Wednesday closed down -4.05 (-2.33%), and May ICE robusta coffee (RMK23) closed down -15 (-0.69%).
Coffee prices Wednesday fell sharply, with arabica posting a 2-month low. Favorable growing conditions and reduced concerns about flooding in Brazil's coffee fields have led to fund-selling of arabica coffee futures. The drier conditions should allow farmers in Minas Gerais, Brazil's largest arabica growing region, back into coffee fields to apply fertilizers and pesticides. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 16.8 mm of rain in the week ended March 26, or 58% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
