September arabica coffee (KCU24) on Monday closed up +5.45 (+2.38%), and Sep ICE robusta coffee (RMU24) closed up +163 (+3.89%).
Coffee prices on Monday rallied sharply, with arabica posting a 1-1/2 week high and robusta posting a 1-month high. Coffee prices are climbing because of the concern that drier-than-normal conditions could adversely affect Brazil's and Vietnam's coffee crops. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 1.3 mm of rain last week, or only 24% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop. Also, the National Oceanic and Atmospheric Administration (NOAA) said that despite recent rain, some coffee producers in Central America still face a moisture deficit following a drought at the start of the season.
