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Barchart
Barchart
Rich Asplund

SHOCKING: Coffee prices gain as ice inventories continue to shrink - You Need To See This

December arabica coffee (KCZ25) today is up +1.55 (+0.39%), and November ICE robusta coffee (RMX25) is up +118 (+2.60%).

Coffee prices are climbing today, with robusta sharply higher at a 1-month high.  Coffee prices have support due to shrinking ICE coffee inventories.  The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories, a bullish factor for coffee prices.  ICE-monitored arabica inventories fell to a 1.5-year low of 494,558 bags on Wednesday, and ICE robusta coffee inventories fell to a 2.75-month low of 6,177 lots today.  American buyers are voiding new contracts for purchases of Brazilian coffee beans due to the 50% tariffs imposed on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.

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