Dec arabica coffee (KCZ23) on Wednesday closed up +4.35 (+2.47%), and Jan ICE robusta coffee (RMF24) closed up +75 (+3.03%).
Coffee prices Wednesday closed sharply higher, with arabica posting a 4-3/4 month high and robusta posting a 1-3/4 month high. Concern that excessive heat in Brazil could damage coffee trees supports coffee prices. Climatempo said Monday that temperatures are expected to be as high as 40 degrees Celsius (104 F) for most of Brazil's coffee-producing regions this week, which could harm coffee trees and reduce yields. Robusta also had carryover support from last Friday when Vietnam's agriculture department projected Vietnam's coffee production in the 2023/24 crop year could drop by -10% to 1.656 MMT, the smallest crop in four years, due to drought.
