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Rich Asplund

Coffee Prices Settle Sharply Higher on Brazil Coffee Crop Concerns

Ice Brazil Vietnam Rabobank the International Coffee Organization USDA

May arabica coffee (KCK24) on Tuesday closed up +5.95 (+3.10%), and May ICE robusta coffee (RMK24) closed up +184 (+5.29%).

Coffee prices on Tuesday rallied sharply, with arabica posting a 4-week high and robusta posting a new record high. Coffee prices have carryover support from Monday on concern that recent heavy rain in Brazil's coffee-growing regions may have damaged coffee crops. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 75.4 mm of rainfall in the past week, or 335% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.

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