Arabica coffee futures listed on ICE moved downward on Tuesday following forecasted rain in Brazil.
The prices for September’s arabica prices dropped $US 0.7, or about 0.45%, to $1.555 per lb. According to some market traders, the outlook for Brazil’s harvest next year was looking positive after the prolonged dry spell appeared to be coming to an end, and a more healthy level of rain forecast.
The 6-10 day weather forecast shows above-normal precipitation in the coffee-growing region of Minas Gerais and Espírito Santo, with the heaviest rainfall towards the southern part of the important coffee belt.
Robusta prices stay strong for September’s contract, rising by $3, or 0.2%, to $1,599 a tonne.