December arabica coffee (KCZ25) on Tuesday closed up +2.65 (+0.71%), and November ICE robusta coffee (RMX25) closed up +14 (+0.33%).
Coffee prices settled higher on Tuesday due to tighter ICE inventories and concerns about the Vietnamese crop. The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories, a bullish factor for coffee prices. ICE-monitored arabica inventories fell to a 1.5-year low of 571,754 bags on Monday. ICE robusta coffee inventories fell to a 2-month low of 6,464 lots on September 19. American buyers are voiding new contracts for purchases of Brazilian coffee beans due to the 50% tariffs imposed on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.
