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Rich Asplund

EXPLAINED: Arabica coffee supported by dry conditions in brazil - The Real Truth

Brazil arabica Ice Somar Meteorologia Vietnam United States Minas Gerais

September arabica coffee (KCU25) today is up +7.70 (+2.67%), and September ICE robusta coffee (RMU25) is down -4 (-0.12%).

Arabica coffee is sharply higher for a second day today due to below-average rainfall in Brazil. Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 2.7 mm of rain during the week ended August 2, only 31% of the historical average. However, robusta coffee is under pressure today on forecasts for widespread showers this week in Vietnam, which should boost crop yields in the world's largest robusta producer.

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