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Barchart
Barchart
Rich Asplund

Coffee Prices Falter as the Dollar Climbs

Dec arabica coffee (KCZ23) on Tuesday closed down -2.95 (-1.70%), and Jan ICE robusta coffee (RMF24) closed down -64 (-2.64%).

Coffee prices on Tuesday posted moderate losses.  A stronger dollar Tuesday sparked long liquidation in coffee futures.  Also, abundant rain in Brazil is supportive of coffee yields and bearish for coffee prices.  Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 59.5 mm of rain in the past week, or 135% of the historical average.  Minas Gerais accounts for about 30% of Brazil's arabica crop.

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