July arabica coffee (KCN23) this morning is up +9.00 (+4.85%), and July ICE robusta coffee (RMN23) is up +83 (+3.10%).
Coffee prices this morning are sharply higher, with arabica posting a 3-week nearest-futures high and robusta posting a 2-week high. Fund buying fueled a surge in coffee prices today as an El Nino weather event has begun, which could undercut global coffee production. The U.S. Climate Prediction Center said today that sea surface temperatures across the equatorial Pacific Ocean had risen 0.5 degrees Celsius above normal, and wind patterns have changed to the point where El Nino criteria have been met. An El Nino pattern typically brings heavy rains to Brazil and drought to India, negatively impacting coffee crop production.
