July arabica coffee (KCN24) on Friday closed up +2.60 (+1.21%), and July ICE robusta coffee (RMN24) closed up +73 (+1.91%).
Coffee prices on Friday settled moderately higher but remained below Thursday's 3-week highs. Concerns that excessive dryness in Brazil and Vietnam will damage coffee crops and curb global production underpin prices. On Wednesday, coffee trader Volcafe said Vietnam's 2024/25 robusta coffee crop may only be 24 million bags, the lowest in 13 years, as poor rainfall in Vietnam has caused "irreversible damage" to coffee blossoms. Volcafe also projects a global robusta deficit of 4.6 million bags in 2024/25, a smaller deficit than the 9-million-bag deficit seen in 2023/24 but the fourth consecutive year of robusta bean deficits.
