Sep arabica coffee (KCU23) on Wednesday closed down -0.35 (-0.23%), and Sep ICE robusta coffee (RMU23) closed down -41 (-1.58%).
Coffee prices Wednesday extended this week's losses, with arabica falling to a 7-month low and robusta falling to a 2-1/4 month low. Coffee prices are under pressure as favorable weather in Brazil, the world's largest arabica coffee producer, has accelerated the country's coffee harvest, boosting supplies and undercutting prices. Cooxupe, Brazil's coffee export cooperative, reported today that Brazil's coffee harvest was 81.9% completed as of August 11, ahead of the 79.8% completed at the same time last year. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 1.8 mm of rain last week, or 56% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
