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Rich Asplund

Dry Conditions in Brazil Underpin Coffee Prices

Ice Brazil Somar Meteorologia the USDA FAS Conab Vietnam Minas Gerais Vietnam General Statistics Office Volcafe

May arabica coffee (KCK25) Tuesday closed up +9.75 (+2.54%), and May ICE robusta coffee (RMK25) closed up +177 (+3.29%).

Coffee prices settled higher on Tuesday due to below-normal rainfall in Brazil. Somar Meteorologia reported Monday that Brazil's biggest arabica coffee growing area of Minas Gerais received 1.1 mm the week ended March 8, or 2% of the historical average. Coffee prices also saw support as the dollar index (DXY00) tumbled to a 4-3/4 month low Tuesday.

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