Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ21) this morning is up +2.80 (+1.39%), and Nov ICE Robusta coffee (RMX21) is down -8 (-0.38%).
Coffee prices this morning are mixed, with robusta falling to a 1-week low. Arabica is moderately higher as prices consolidate above Monday's 1-week low. Signs of robust rain in Brazil have recently pressured arabica coffee prices. Somar Meteorologia on Monday reported that Minas Gerais, a region that accounts for about 30% of Brazil's arabica coffee crop, received 65 mm of rain or 215% of the historical average last week. The all-important flowering period for Brazilian coffee trees begins this month, and abundant rain may boost coffee tree flowering and increase coffee yields. Water availability in the soil in Minas Gerais was at critical levels between 0% and 30%, which is well below the minimum level for crop development of 60%.
A bearish factor for arabica coffee is weakness in the Brazilian real after the real (^USDBRL) fell to a 5-3/4 month lo... Read more