September arabica coffee (KCU24) on Monday closed up +0.45 (+0.18%), and Sep ICE robusta coffee (RMU24) closed up +43 (+0.92%).
Coffee prices on Monday finished higher, with arabica posting a 1-week high and robusta posting a 4-week nearest-futures high. Dry conditions in Brazil are bullish for coffee prices due to the possibility of premature flowering on coffee trees and reduced yields for Brazil's 2024/25 coffee crop. Cooxupe, Brazil's top coffee cooperative, said coffee trees remain stressed as several coffee-growing regions in Brazil have not had meaningful rain in the last 120 days. Also, Somar Meteorologia reported Monday that Brazil's Minas Gerais region received no rain last week or 0% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
