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Barchart
Barchart
Rich Asplund

Tightness in the Near-Term Supply Outlook Boosts Coffee Prices

Ice Brazil arabica USDA

September arabica coffee (KCU26) on Tuesday closed up +14.85 (+4.58%), and September ICE robusta coffee (RMU26) closed up +78 (+2.05%).

Coffee prices settled sharply higher on Tuesday for a second day, posting 2-week highs amid concern that heavy rain in Brazil will further disrupt the country’s coffee harvest and tighten global supplies. On Monday, Somar Meteorologia reported that 32.4 mm of rain, or 2700% of the historical average, fell in the week ended July 26 in Minas Gerais, Brazil’s biggest coffee-growing region.

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