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Rich Asplund

Coffee Prices Rally on Below-Average Rainfall in Brazil

Ice Brazil Somar Meteorologia arabica United States Vietnam USDA

September arabica coffee (KCU25) on Monday closed up +4.35 (+1.53%), and September ICE robusta coffee (RMU25) closed up +91 (+2.73%).

Coffee prices rallied sharply on Monday as below-average rainfall in Brazil sparked some short-covering in coffee futures. Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 2.7 mm of rain during the week ended August 2, only 31% of the historical average.

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