July arabica coffee (KCN26) on Tuesday closed up +5.95 (+2.25%), and July ICE robusta coffee (RMN26) closed up +39 (+1.18%).
Coffee prices erased early losses on Tuesday and moved higher as the three-week selloff pushed prices into heavily oversold territory, sparking technical buying and fund short-covering. Also, ICE coffee inventories have trended lower over the past 2 months, which is supportive of coffee prices. ICE robusta inventories fell to a 2-year low of 3,631 lots last Friday. Also, ICE arabica coffee inventories fell to a 2.75-month low of 458,735 bags on Tuesday.