Coffee prices Tuesday posted moderate gains, with arabica climbing to a 2-week high. Excessive dryness in Brazil that may curb coffee yields pushed prices higher Tuesday. 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.
September arabica coffee rose 4.95 cents, or 2.2%, to $2.3235 per lb as the market continued to derive support from falling ICE certified stocks.
ICE certified stocks fell again on Tuesday to 981,901 bags, the lowest amount in 22 years, as the industry continues to opt for coffee that is cheaper than similar product in the spot market.
September robusta coffee rose $24, or 1.2%, to $2,101 a tonne.