July arabica coffee (KCN24) on Wednesday closed up +3.80 (+1.72%), and July ICE robusta coffee (RMN24) closed up +44 (+1.05%).
Coffee prices recovered from early losses on Wednesday and posted moderate gains. Short covering emerged in coffee futures Wednesday after updated weather forecasts called for limited chances of rain in Brazil's coffee-growing regions over the next week. Arabica coffee has support from the lack of rain in Brazil. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received no rain in the past week. Minas Gerais accounts for about 30% of Brazil's arabica crop.
