December arabica coffee (KCZ24) Tuesday closed up +7.35 (+2.87%), and January ICE robusta coffee (RMF25) closed up +61 (+1.36%).
Coffee prices rallied on Tuesday, with arabica climbing to a 6-week high and robust posting a 3-week high. The lack of sales by Brazil's coffee farmers hoping for higher prices has tightened supplies in the cash market and underpins coffee prices. Also, the outlook for hot and dry conditions to persist in Minas Gerais, Brazil's biggest Arabica coffee-producing region, is supporting arabica prices. Meteorologist Climatempo said Monday that after a brief spell of rains mid-week in Minas Gerais, forecasts have turned hotter and drier for the region over the next 10 days.
