Coffee Futures Market News and Commentary
Mar arabica coffee (KCH20) on Tuesday closed down -2.55 (-2.34%), and Mar ICE Robusta coffee (DFH0) closed down -25 (-1.94%).
Coffee prices fell moved lower Tuesday as arabica coffee fell back from a 3-week high on weakness in the Brazilian real. The real dropped -0.70% Tuesday against the dollar and is just above last Thursday's record low of 4.3817 reals/USD. A weaker real encourages export selling by Brazil's coffee producers.
Arabica coffee early Tuesday climbed to a 3-week high on weather concerns in Brazil. Somar Meteorologia reported on Monday that rainfall in Minas Gerais, Brazil's largest arabica-coffee growing region, measured 131.8 mm in the past week, or 304% of the historical average. The heavy rains have saturated Brazil's coffee fields and may curb coffee yields
Coffee prices were already in rally mode on concern about tighter coffee supplies. Last Tuesday, Cecafe reported that Brazil Jan green coffee exports fell -7.2% y/y to 3.222 mln bags. Also... Read more