December arabica coffee (KCZ25) today is up +6.70 (+1.78%), and November ICE robusta coffee (RMX25) is up +84 (+1.90%).Coffee prices are climbing today as ICE coffee inventories continue to shrink. The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories, a bullish factor for coffee prices. ICE-monitored arabica inventories fell to a 1.5-year low of 534,665 bags on Tuesday, and ICE robusta coffee inventories fell to a 2.5-month low today of 6,237 lots. American buyers are voiding new contracts for purchases of Brazilian coffee beans due to the 50% tariffs imposed on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.
Last Friday, coffee prices rallied to 3-week highs on concerns about dry weather in Brazil during the critical flowering phase of the 2026/27 coffee crop. Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 0.9 mm of rain during the week ended October 4, or 3% of the historical average.
