September arabica coffee (KCU24) today is up +12.55 (+5.35%), and Sep ICE robusta coffee (RMU24) is up +212 (+4.88%).
Coffee prices today are sharply higher for a second day, with Sep arabica and Sep robusta posting contract highs and nearest-future July robusta posting an all-time high. Coffee prices are soaring due to concern that drier-than-normal conditions could adversely affect Brazil's and Vietnam's coffee crops. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 1.3 mm of rain last week, or only 24% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop. Also, the National Oceanic and Atmospheric Administration (NOAA) said that despite recent rain, some coffee producers in Central America still face a moisture deficit following a drought at the start of the season.
