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Barchart
Rich Asplund

Coffee Prices Sharply Lower as Brazil Rains Bolster Crop Prospects

Ice Brazil FAs Vietnam

March arabica coffee (KCH26) on Tuesday closed down -16.15 (-4.85%), and March ICE robusta coffee (RMH26) closed down -219 (-5.44%).

Coffee prices extended their week-long plunge on Tuesday, with arabica falling to a 5.5-month low and robusta sliding to a 6-week low.   Coffee prices have been under pressure over the past week amid forecasts of steady rains in Minas Gerais, Brazil's main coffee-growing region.  Above-average rainfall in Brazil has eased dryness concerns and is weighing on coffee prices.   Somar Meteorologia reported on Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 69.8 mm of rain during the week ended January 30, or 117% of the historical average.

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