On Thursday, September arabica coffee (KCU26) closed up 4.10 cents (+1.14%), while September ICE robusta coffee (RMU26) decreased by 16 cents (-0.43%). Arabica prices rose as participants reacted to limited supply due to an ongoing coffee harvest in Brazil, where 81.1% of the harvest was complete as of August 14—a decrease from 86.1% a year earlier.
Brazil’s low rainfall, recorded at just 0.6 mm (11% of historical average) during the week ending August 16 in Minas Gerais, is expected to expedite coffee harvesting, affecting future prices. Additionally, ICE arabica inventories fell to a 2.75-year low at 229,214 bags, contrasting with rising ICE robusta inventories which reached a 5.25-month high of 4,622 lots.
Furthermore, the recent earthquake in Colombia, affecting key coffee-producing areas, has partially disrupted exports but has not significantly damaged processing facilities. This situation compounds worries about potential impacts from the El Niño weather pattern anticipated to affect coffee crops in Brazil for the upcoming year.
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