Coffee futures revived their upward trajectory on Tuesday, aiming to reach $4 again for the first time since the middle of February. Coffee has taken a modest breather as of late, though the fuel of Western Civilization has had a solid 12-month period.
May coffee futures surged $0.0645, or 1.64%, to $3.9985 per pound at 17:13 GMT on Tuesday on the US ICE Futures exchange. Coffee prices have climbed 5% this month and are on track for a quarterly gain of about 22%.
Robusta, which is used mainly for instant coffee compared to the premium Arabica, also rocketed on Tuesday. May Robusta futures tacked on $98.00, or 1.78%, to $5,599 per metric ton. Robusta is up 12% this year.
Coffee prices are responding to fresh data out of Brazil indicating that the South American country experienced scanty rainfall, something that could hurt its harvest. All major producing areas endured cumulative rainfall this month that has been below historical averages.
Experts warn that the drought could impact both this year’s and next year’s harvest.
Prices might have been limited by reports that Vietnam’s exports surged in February. Vietnam’s General Statistics Office confirmed that coffee exports increased more than 6% last month, totaling 169,000 metric tons.
Meanwhile, a strengthening Brazilian real has weighed on the global coffee market.
The real has strengthened 8% against the US dollar this year. This is bad news for foreign buyers since a strengthening real makes coffee more expensive to purchase.
In other agricultural commodities, April corn futures shed $0.0625, or 1.35%, to $4.5825 per bushel. April wheat futures fell $0.0625, or 1.14%, to $5.42 a bushel. April soybean futures declined $0.0775, or 0.77%, to below $10 per bushel.

