Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ20) on Thursday closed down -0.40 (-0.38%). Jan ICE Robusta coffee (RMF21) closed down -10 (-0.74%).
Coffee prices on Thursday posted moderate losses, with arabica coffee falling to a 3-1/4 month low. Weakness in the Brazilian real against the dollar weighed on arabica coffee, while an increase in Vietnam coffee exports weighed on robusta.
The real on Thursday fell -0.26% against the dollar and is just above Wednesday's 5-1/4 month low against the dollar. The weaker real encourages export selling from Brazil's coffee producers. Safras & Mercado on Oct 2 said that the real's weakness against the dollar and robust coffee sales by farmers might push Brazil's 2020/21 coffee exports up to a record 41.8 mln bags.
Another bearish factor for arabica was the statement on Wednesday from researcher Cepea, who said that arabica-coffee trees in Minas Gerais experienced "significant" coffee flowering after rain earlier this month, which may boost Brazil... Read more