Coffee Futures Market News and Commentary
Mar arabica coffee (KCH21) this morning is down -2.20 (-1.74%), and March ICE Robusta coffee (RMH21) is down -11 (-0.83%).
Coffee prices this morning are moving lower with robusta at a new 1-week low. Forecasts for weekend rain in Minas Gerais, Brazil's largest arabica coffee growing region, is undercutting coffee prices today. A rebound in ICE coffee inventories is another bearish factor for coffee prices. ICE-monitored arabica coffee inventories on Thursday rose to a 5-1/2 month high of 1.571 mln bags, recovering further from the 20-3/4 year low of 1.096 mln bags posted on October 5. Also, ICE-monitored robusta coffee inventories climbed to a 9-1/2 month high Thursday, rebounding from the 2-year low of 10,808 lots posted on October 14.
Robusta prices dropped to a new 1-week low today on negative carry-over from Thursday when Conab forecast Brazil 2021 robusta coffee production may increase as much as 16% y/y to 16.6 million bags.
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