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Barchart
Barchart
Rich Asplund

Coffee Prices Supported by Insufficient Rain in Brazil

Ice Brazil United States Vietnam FAs

March arabica coffee (KCH26) today is up +0.65 (+0.17%).  March ICE robusta coffee (RMH26) is up +19 (+0.48%).

Coffee prices are moving higher today, with arabica posting a 4-week high.  Coffee prices extended this week's rally today due to below-average rainfall in Brazil, the world's largest arabica producer.  Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 47.9 mm of rain during the week ended January 2, or 67% of the historical average.   Also, strength in the Brazilian real is supportive for arabica coffee.  The real (^USDBRL) rallied to a 1-month high against the dollar on Tuesday, discouraging export sales from Brazil's coffee producers.

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