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Barchart
Barchart
Rich Asplund

Coffee Prices Settle Higher on Brazil Dryness and Brazilian Real Strength

May arabica coffee (KCK25) Monday closed up +5.20 (+1.64%), and May ICE robusta coffee (RMK25) closed up +77 (+1.43%).

Coffee prices on Monday settled moderately higher, supported by dry conditions in Brazil and strength in the Brazilian real.  Somar Meteorologia reported Monday that Brazil's biggest arabica coffee growing area of Minas Gerais received 30.8 mm of rain in the week ended March 15, or 71% of the historical average.  Also, the Brazilian real (^USDBRL) rallied to a 3-1/2 week high Monday against the dollar, discouraging export selling from Brazil's coffee producers.

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