Coffee Futures Market News and Commentary
September arabica coffee (KCU22) on Monday closed up +0.90 (+0.42%), and Sep ICE Robusta coffee (RMU22) closed +22 (+1.06%).
Coffee prices are seeing support from news of continued dry conditions in Brazil last week. Somar Meteorologia reported Monday that Minas Gerais received no rain last week, or 0% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop. Coffee prices rose on Tuesday despite forecasts by Rural Clima on Monday for some rain in Brazil through August 10.
Tightness in ICE-monitored arabica coffee inventories is bullish for prices after ICE inventories fell to a new 23-year low of 610,159 bags on Tuesday, the lowest level since 1999.
Smaller coffee supplies from Colombia are supportive of arabica prices. The National Federation of Coffee Growers reported last Wednesday that Colombia's July coffee production fell -22% y/y to 944,000 bags. Colombia is the world's second-largest producer of arabica beans.
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