March arabica coffee (KCH24) on Friday closed up +7.50 (+3.97%), and Mar ICE robusta coffee (RMH24) closed up +104 (+3.20%).
Coffee prices on Friday rallied sharply to 1-week highs. Forecasts for limited rain in Brazil over the next week pushed arabica coffee prices higher Friday. Robusta rallied on dwindling supplies after ICE-monitored robusta coffee inventories fell to a new record low Friday.
Dry conditions in Brazil are supporting arabica coffee prices. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received 30.9 mm of rainfall in the past week, or 49% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
Coffee inventories are tight, which is a supportive factor for coffee prices. ICE-monitored robusta coffee inventories on Friday fell to a record low of 2,514 lots. ICE-monitored arabica coffee inventories fell to a 24-year low of 224,066 bags on November 30, although they recovered moderately to a 2-3/4 month high Friday of 297,795 bags.
The Wombat has Rule 5 Sunday: Snow Bunny up for your digital pleasure at The Other McCain.
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