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Barchart
Rich Asplund

Excessive Dryness in Brazil Supports Coffee Prices

Ice Brazil arabica Vietnam FAs

March arabica coffee (KCH26) today is up +1.45 (+0.41%).  March ICE robusta coffee (RMH26) is up +7 (+0.18%).

Coffee prices are moving higher today on concerns that excessive dryness in Brazil could lead to smaller coffee yields.  Last Thursday, arabica rallied to a 1-month high due to below-average rainfall in Brazil, the world's largest arabica producer.  Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 26.5 mm of rain during the week ended January 9, or 29% of the historical average.  

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