
December arabica coffee (KCZ25) on Wednesday closed up +7.30 (+1.77%), and November ICE robusta coffee (RMX25) closed up +119 (+2.58%).
Coffee prices extended this week's rally on Wednesday to 5-week highs. Coffee prices have support from shrinking ICE coffee inventories. The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories. ICE-monitored arabica inventories fell to a 19-month low of 465,910 bags on Wednesday, and ICE robusta coffee inventories fell to a 3-month low of 6,141 lots. American buyers are voiding new contracts for purchases of Brazilian coffee beans due to the 50% tariffs imposed on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.