Coffee Futures Market News and Commentary
Sep arabica coffee (KCU21) on Monday closed up +18.80 (+9.95%), and Sep ICE Robusta coffee (RMU21) closed up +65 (+3.42%).
Coffee prices on Monday extended their week-long parabolic rally, with arabica surging to a 6-3/4 year nearest-futures high. Coffee prices continue to soar on concern that the twin risks of drought and frost will decimate Brazil's coffee crops. Coffee trees in Brazil were already weakened by drought and then pummeled by two frosts in less than a month. Additional frost damage in Brazil may push coffee prices even higher after Maxar on Monday forecasted frost across southern Minas Gerais from July 28-30. Brazil accounts for 40% of the world's total coffee production.
Rural Clima said last Wednesday said that damage to coffee trees from frost in Minas Gerais was "very significant" after parts of South Minas Gerais saw the coldest temperatures in 27 years. Frost may burn leaves and branches on trees and curb the outlook for Brazil's 2022 crop, whic... Read more