Arabica Coffee rebounces above 3-1/2-month low after forecasts for below-normal rain in top grower Brazil. Sources said traders were closely monitoring weather in Brazil.
Below forecasts for next ten days in major coffee growing regions raised concern about coffee pollination since Brazil coffee trees is in critical blossom stage and requires further rain to support pollination.
December arabica coffee settled up 0.4 cent at $1.2415 per lb, after falling to its lowest since June 28 at $1.23.
Meteorologist MDA Information Systems forecasts below normal rainfall across Brazil’s major Coffee growing regions like Minas Gerais, Espirito Santo and Bahia.
There is also news that Top robusta grower Vietnam has been hit by deadly flooding.