
March arabica coffee (KCH26) on Tuesday closed up +14.50 (+4.04%). March ICE robusta coffee (RMH26) closed up +89 (+2.27%).
Coffee prices rallied sharply on Tuesday, with arabica posting a 4-week high. Below-average rainfall in Brazil, the world's largest arabica producer, is supporting arabica coffee. 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.