Coffee Futures Market News and Commentary
Mar arabica coffee (KCH20) on Monday closed down -3.55 (-3.22%), and Mar ICE Robusta coffee (DFH0) closed up +9 (+0.68%).
Coffee prices on Monday settled mixed with arabica coffee at a 2-1/4 month low as weakness in the Brazilian real weighed on arabica coffee. Coffee prices were also hurt by the spreading Chinese coronavirus, which has hurt commodity prices in general. The Chinese virus has also caused worries about coffee demand as consumers curb their trips to public places and has caused some coffee shops in China to shut down.
Arabica coffee was under pressure Monday from weakness in the Brazilian real which dropped -0.60% against the dollar to a 1-3/4 month low against the dollar. A weaker real encourages export selling by Brazil's coffee producers and is bearish for sugar prices.
Another bearish factor for arabica coffee is above-normal precipitation in Brazil after Somar Meteorologia on Monday said that rainfall in Minas Gerais, Brazil's largest arabica-... Read more