December arabica coffee (KCZ25) on Wednesday closed up +2.80 (+0.72%), and January ICE robusta coffee (RMF26) closed up +145 (+3.25%).
Coffee prices settled higher on Wednesday. Coffee prices are supported by shrinking ICE coffee inventories. The 50% tariffs imposed on US imports from Brazil have led to a sharp drawdown in ICE coffee inventories. ICE-monitored arabica inventories fell to a 1.5-year low of 446,475 bags on Wednesday, and ICE robusta coffee inventories fell to a 3.25-month low of 6,111 lots. American buyers are voiding new contracts for Brazilian coffee purchases due to the 50% tariffs on US imports from Brazil, thereby tightening US supplies, as about a third of America's unroasted coffee comes from Brazil.
