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Rich Asplund

Delayed Brazil Harvest and Tight Inventories Underpin Coffee Prices

Ice Brazil BI Vietnam FAs

September arabica coffee (KCU26) on Wednesday closed up +1.24 (+0.45%), and July ICE robusta coffee (RMN26) closed up +127 (+3.55%).

Coffee prices extended their two-week-long rally on Wednesday and posted 6-week highs. Renewed rains in Brazil are delaying the country’s coffee harvest and pushing arabica prices higher. Meteorologist Climatempo said a new cold front is supporting rainfall over southern Brazil, with more than 50 millimeters (2 inches) expected through this week, which will limit field activities and potentially lower the quality of the coffee crop.

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