December arabica coffee (KCZ25) on Wednesday closed up +8.35 (+2.06%), and January ICE robusta coffee (RMF26) closed up +5 (+0.11%).
Coffee prices moved higher on Wednesday, with arabica up sharply at a 1.5-week high. Concerns that adverse weather events worldwide will disrupt global coffee production are underpinning coffee prices. Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received only 33.4 mm of rain during the week ended October 31, or 75% of the historical average. That followed only 1% of normal rain in the previous week. Also, Typhoon Kalmaegi is forecast to make landfall in southern Vietnam on Thursday or Friday and could cause damage to robusta crops in Vietnam's coffee-growing areas.
