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Barchart
Barchart
Rich Asplund

Coffee Prices Soar on Fears of Tighter Supplies

December arabica coffee (KCZ25) on Monday closed up +20.80 (+5.24%), and November ICE robusta coffee (RMX25) closed up +241 (+5.24%).

Coffee prices soared on Monday, with Dec arabica posting a contract high and nearest-futures (U25) arabica posting a 6.75-month high.  Also, robusta posted a 3-week high.  The lack of rain in Brazil's coffee-growing regions ahead of the critical flowering period for coffee trees is pushing coffee prices sharply higher.  Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received no rain during the week ended September 13.  

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