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Rich Asplund

Coffee Rallies With Robusta at a Record High on Shrinking Coffee Output in Vietnam

Ice Vietnam Brazil ICO Rabobank the International Coffee Organization USDA

May arabica coffee (KCK24) on Wednesday closed up +2.60 (+1.38%), and May ICE robusta coffee (RMK24) closed up +94 (+2.71%).

Coffee prices on Wednesday moved higher, with arabica climbing to a 2-1/2 week high and robusta posting an all-time nearest futures high. Robusta coffee prices are soaring after the Vietnam Coffee Association said Tuesday that Vietnam's 2023/24 coffee exports could drop -20% y/y to 1.336 MMT as dry weather reduced coffee yields and production. The strength of robusta prices Wednesday provided carryover support to arabica coffee.

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