Coffee Futures Market News and Commentary
May arabica coffee (KCK21) on Thursday closed down -0.65 (-0.49%), and May ICE Robusta coffee (RMK21) closed down -20 (-1.40%).
Coffee prices on Thursday extended this week's losses down to new 1-week lows. Signs of adequate global coffee supplies continue to undercut prices. An increase in arabica supplies from Colombia, the world's second-largest arabica producer, weighed on prices Thursday after the National Federations of Coffee Growers reported Colombia Feb coffee exports jumped +18% y/y to 1.275 mln bags. Coffee prices were already on the defensive after the International Coffee Organization (ICO) reported on Monday that Oct-Jan global coffee exports rose +3.7% y/y to 41.876 mln bags.
Weakness in the Brazilian real is another bearish factor for arabica prices. The real on Wednesday fell to a 4-month low against the dollar, which provides an incentive for export selling by Brazil's coffee producers.
Coffee prices have rallied sharply o... Read more