Coffee Futures Market News and Commentary
March arabica coffee (KCH24) on Monday closed down -4.95 (-2.69%), and Jan ICE robusta coffee (RMF24) closed down -26 (-1.01%).
Coffee prices Monday settled sharply lower on signs of bigger supplies. Brazil's Trade Ministry reported late last Friday that Brazil's Nov coffee exports (not roasted) rose +8.5% y/y to 235,000 MT. Also, Honduras, Central America's biggest coffee-producing country, reported its Nov coffee exports jumped +63% y/y to 110,413 bags.
Weakness in the Brazilian real (^USDBRL) also pressured coffee prices after the real on Monday fell to a 1-month low against the dollar, encouraging export selling by Brazil's coffee producers.
Arabica coffee prices last Friday posted a 6-month high on a new rule from the Intercontinental Exchange (ICE) that bans the resubmission of old coffee inventories, a loophole some sellers use to dodge age penalties. The rule change by ICE is expected to add further pressure to ICE-monitored coffee inventories, providi... Read more