On September 11, 2023, coffee prices showed mixed results with September arabica coffee (KCU26) rising by 2.23% to reach a five-week high, while September ICE robusta coffee (RMU26) decreased by 0.13%. The uptick in arabica prices is attributed to supply concerns after a 7.4 magnitude earthquake struck Colombia, impacting coffee-growing provinces Caldas and Risaralda, which produce about 25% of the nation’s arabica coffee.
Additionally, ICE robusta inventories climbed to a four-and-a-half-month high of 4,352 lots, while ICE arabica inventories fell to a 2.5-year low of 242,673 bags. Reports indicate that Brazil’s coffee harvest is trailing behind previous years, with only 67.3% complete as of July 31, compared to 74.2% last year. Weather patterns, particularly an expected strong El Niño, could adversely affect next year’s crop in Brazil, adding further pressure on prices.
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