Coffee Futures Market News and Commentary
March arabica coffee (KCH2) on Wednesday closed up +0.95 (+0.41%), and Jan ICE Robusta coffee (RMF22) closed up +54 (+2.39%).
Coffee prices on Wednesday posted moderate gains. A weaker dollar on Wednesday sparked short-covering in coffee futures. On Tuesday, arabica posted a 1-week low on the outlook for a global coffee surplus. Late Monday, Rabobank projected the global 2022/23 coffee market would be in surplus by +3.3 mln bags, recovering from a deficit of -5.20 mln bags in 2021/22. Rabobank also estimates that global 2022/23 coffee production will climb +8.2% y/y to 177.1 mln bags.
Robusta coffee has support on tight supplies from Vietnam. Nearest-futures (RMX1) robusta surged to a 10-year high Nov 19 as the shortage of shipping containers has reduced Vietnam's coffee exports. Vietnam Jan-Nov coffee exports are down -4.4% y/y at 1.4 MMT. Also, the USDA's FAS cut its Vietnam 2021//2 coffee export estimate to 25.8 mln bags from 28.8 mln bags due to surging freigh... Read more