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Barchart
Barchart
Rich Asplund

Coffee Prices Settle Sharply Higher on Dry Weather in Brazil

Ice Brazil Vietnam Somar Meteorologia USDA El Nino ICO USDA FAS

March arabica coffee (KCH24) on Monday closed up +6.95 (+3.92%), and Jan ICE robusta coffee (RMF24) closed up +84 (+3.27%).

Coffee prices Monday rallied sharply, with robusta posting a 3-week high.  Dry weather in Brazil risks damaging coffee crops and is bullish for prices.  Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 36.5 mm of rainfall in the past week, or 53% of the historical average.  Minas Gerais accounts for about 30% of Brazil's arabica crop.

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