Sep arabica coffee (KCU23) on Monday closed down -6.70 (-4.25%), and Sep ICE robusta coffee (RMU23) closed down -52 (-1.95%).
Coffee prices Monday sold off sharply, with arabica posting a 6-3/4 month low. Dry conditions in Brazil, the world's largest arabica coffee producer, have accelerated the country's coffee harvest, boosting supplies and undercutting prices. Cooxupe, Brazil's coffee export cooperative, reported last Wednesday that Brazil's coffee harvest was 74.9% completed as of August 4, ahead of the 71.7% completed at the same time last year. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 1.8 mm of rain last week, or 56% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
