Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ23) on Tuesday closed up +2.05 (+1.38%), and Nov ICE robusta coffee (RMX23) closed up +13 (+0.53%).
Coffee prices Tuesday closed moderately higher on concerns that excessive dryness in Brazil will hamper the country's coffee production. Updated weather forecasts removed rain for Brazil this week. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received only 0.9 mm of rain in the past week, or 5% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
Gains in coffee Tuesday were limited by weakness in the Brazilian real. The real (^USDBRL) dropped to a 2-week low against the dollar, encouraging export selling by Brazil's coffee producers.
Arabica prices have carryover pressure from last Wednesday after Conab, Brazil's crop forecasting agency, raised its 2023 Brazil arabica coffee crop estimate to 38.2 million bags from May's forecast of 37.9 million bags. Robusta coffee is also unde... Read more