Coffee Futures Market News and Commentary
May arabica coffee (KCK20) this morning is down =1.20 (-1.00%), and May ICE Robusta coffee (DFK0) is down -9 (-0.76%).
Coffee prices this morning are lower on demand concerns and on weakness in the Brazilian real.
Coffee prices continue to be undercut as the coronavirus spreads globally and has forced the shutdown of many restaurants, cafes, and bars around the world.
Persistent weakness in the Brazilian real against the dollar is another bearish factor for arabica coffee. The real is down -0.59% today at a 2-week low against the dollar and is just above last Wednesday's record low of 5.2523 reals/USD. A weaker real encourages export selling by Brazil's coffee producers.
A negative factor for coffee prices is drier weather in Brazil that may allow rain-soaked coffee farms to dry out from recent heavy rains. Somar Meteorologia today reported that rain in Minas Gerais, Brazil's largest arabica coffee-growing region, was 1.2 mm in the past week, or only 4% o... Read more