March arabica coffee is up +3.15 (+1.67%), and Mar ICE robusta coffee is up +27 (+0.84%).
Coffee prices are moderately higher on Wednesday. Excessive dry conditions in Brazil may reduce coffee yields and is a bullish factor for coffee prices. Robusta coffee is finding support today on dwindling supplies after ICE-monitored robusta coffee inventories fell to a new record low.
Excessively dry conditions in Brazil are supporting arabica coffee prices. Somar Meteorologia reported Monday that Brazil’s Minas Gerais region received 30.9 mm of rainfall in the past week, or 49% of the historical average. Minas Gerais accounts for about 30% of Brazil’s arabica crop.
Meanwhile, low coffee inventories are bullish for coffee prices. Today, ICE-monitored robusta coffee inventories fell to a record low of 2,584 lots. ICE-monitored arabica coffee inventories fell to a 24-year low of 224,066 bags on November 30, although they recovered moderately to a 2-1/4 month high Tuesday at 288,745 bags.
May robusta coffee rose 0.1% to $3,099 a ton.
Dealers said supplies in Europe remained very tight with conflict in the Red Sea leading to delays in shipments from major Asian producers.
May arabica coffee rose 0.5% to $1.8610 per lb.
Dealers said there were concerns about dry conditions in Brazil with recent rainfall in some areas not sufficient to allay concerns.