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Barchart
Barchart
Rich Asplund

Coffee Prices Sharply Higher as ICE Inventories Shrink

December arabica coffee (KCZ25) on Friday closed up +11.05 (+2.79%), and January ICE robusta coffee (RMF26) closed up +118 (+2.60%).

Coffee prices settled sharply higher on Friday due to shrinking ICE coffee inventories.  The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories.  ICE-monitored arabica inventories fell to a 1.75-year low of 417,478 bags on Friday, and ICE robusta coffee inventories fell to a 3.5-month low of 5,926 lots.  American buyers are voiding new contracts for Brazilian coffee purchases due to the 50% tariffs on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.  

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