September arabica coffee (KCU24) on Friday closed down -11.25 (-4.59%), and Sep ICE robusta coffee (RMU24) closed down -110 (-2.48%).
Coffee prices Friday sold off sharply after Brazil's weather forecasts for next week shifted warmer, which reduced the chances of frost damaging coffee trees and sparked long liquidation in coffee futures. Coffee prices have rallied this week, with arabica posting a 1-month high Thursday and robusta posting a 2-1/2 week high on concern that freezing temperatures in Brazil could damage coffee crops after Rural Clima forecasted that temperatures in Brazil could drop to near freezing next week.
