December arabica coffee (KCZ24) Tuesday closed down -1.85 (-0.74%), and November ICE robusta coffee (RMX24) closed down -90 (-1.97%).
Coffee prices Tuesday extended Monday's losses, with robusta posting a 2-1/4 month low. Above-average rainfall in Brazil is easing drought concerns and weighing on coffee prices. On Monday, arabica coffee posted a 1-1/2 week low after Somar Meteorologia reported that Brazil's Minas Gerais region received 36.8 mm of rain over the past week, or 115% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop. Also, meteorologist Climatempo said Monday that more significant rains are expected in Minas Gerais from Friday onwards, which will keep temperatures milder and improve soil moisture levels.
