Coffee Prices Fall On Ample Rain In Brazil

March arabica coffee on Monday closed down -4.10 (-1.63%), and Mar ICE Robusta coffee closed down -21 (-0.92%).

Coffee prices Monday posted moderate losses on signs that adequate rain in Brazil will benefit the country’s coffee crop.  Somar Meteorologia reported Monday that Minas Gerais, a region that accounts for about 30% of Brazil’s arabica coffee crop, received 64.3 mm of rain or 136% of the historical average last week.  

Arabica rallied to a 10-1/4 year nearest-futures high last Thursday on signs of tighter global supplies.  ICE-monitored arabica coffee inventories Monday fell to a 22-year low of 1.033 mln bags. Also, ICE-monitored robusta coffee inventories fell to a 3-1/4 year low of 9,011 lots Monday.  In addition, data from Cecafe on Feb 2 showed Brazil Jan green coffee exports fell -14% y/y to 2.9 mln bags.