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Barchart
Barchart
Rich Asplund

Coffee Prices Underpinned by Dryness in Brazil and Brazilian Real Strength

May arabica coffee (KCK25) today is up +7.55 (+1.97%), and May ICE robusta coffee (RMK25) is up +46 (+0.84%).

Coffee prices are climbing today due to dry conditions in Brazil and the strength of the Brazilian real.  Somar Meteorologia reported Monday that Brazil's biggest arabica coffee growing area of Minas Gerais received 30.8 mm of rain in the week ended March 15, or 71% of the historical average.  Also, the Brazilian real (^USDBRL) rallied to a 4-1/2 month high today against the dollar, discouraging export selling from Brazil's coffee producers.

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