May arabica coffee (KCK23) on Monday closed down -2.35 (-1.31%), and May ICE robusta coffee (RMK23) closed up +25 (+1.14%).
Coffee prices Monday settled mixed, with robusta climbing to a 6-month nearest-futures high. Favorable growing conditions and reduced concerns about flooding in Brazil's coffee fields are bearish for arabica coffee prices. 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 today 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.
