July arabica coffee (KCN26) on Wednesday closed up +4.00 (+1.64%), and July ICE robusta coffee (RMN26) closed up +61 (+1.85%).
Coffee prices settled sharply higher on Wednesday as short covering emerged after the Japan Meteorological Agency confirmed an El Niño weather pattern had formed across the equatorial Pacific. This sets the stage for months of floods, droughts, and temperature fluctuations later this year that could hinder coffee production in Asia and South America.