December arabica coffee (KCZ25) on Wednesday closed up +9.70 (+2.58%), and November ICE robusta coffee (RMX25) closed up +128 (+2.90%).
Coffee prices settled sharply higher on Wednesday as ICE coffee inventories continue to shrink. 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 525,989 bags on Wednesday, and ICE robusta coffee inventories fell to a 2.5-month low of 6,237 lots. 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.
