Coffee Mar '20 (KCH20)
Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ19) this morning is up +1.25 (+1.18%), and Jan ICE robusta coffee (DFF0) is up +15 (+1.17%).
Coffee prices are higher today on tighter supplies. Current coffee supplies continue to decline after ICE-monitored arabica coffee inventories on Tuesday fell to a 14-1/4 month low of 2.208 million bags.
Concern about tighter supplies has spurred fund buying of coffee over the past 3 weeks as Jan robusta coffee posted a 3-1/4 month high Monday and Dec arabica coffee posted a 3-1/2 month high last Friday. The International Coffee Organization (ICO) last Tuesday projected a global 2019/20 coffee deficit of -502,00 bags, versus a surplus of +3.7 mln bags in 2018/19. ICO projects that global 2019/20 coffee production will fall -0.9% to 167.4 mln bags and that 2019/20 global coffee consumption will climb +1.5% to 167.9 mln bags.
Cecafe reported late Monday that Brazil Oct green coffee exports dropped -14% y/y to 3.1 mln bags, although cumulative Jan-Oct... Read more