July arabica coffee (KCN24) on Wednesday closed up +3.25 (+1.50%), and July ICE robusta coffee (RMN24) closed up +183 (+4.90%).
Coffee prices on Wednesday extended Tuesday's rally to fresh 3-week highs. Coffee prices have moved sharply higher this week on concerns that excessive dryness in Brazil and Vietnam will damage coffee crops and curb global production. Robusta closed sharply higher Wednesday on a report from coffee trader Volcafe that 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.
