MILAN – Coffee futures prices for Arabica and Robusta rallied sharply Monday on technical factors, weather concerns in Brazil, tightness in certified coffee stocks and a stronger Brazilian real. The ICE Arabica contract for September delivery closed at 215.20 cents per lb, up 1540 points (+7.7%) rebounding from a nine-month low of $1.9460 set on Friday. The ICE Robusta contract for September delivery closed $69 up (+3.6%) at $1,992 a tonne.
Dealers said the recent bout of fund long liquidation appears to have dried up, while the current low level of exchange certified stocks also remained a supportive influence.
Tightness in ICE coffee inventories is also supportive after ICE monitored Arabica coffee inventories Monday dropped to a new 22-year low of 734,157 bags.
In Brazil after Somar Meteorologia reported Monday that Minas Gerais received 0.5 mm of rain last week, or 12% of the historical average.
The analysts Safras & Mercado have reported than an estimated 59% of the new Brazil coffee crop had already been harvested as of July 12th compared to 48% the previous week.
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