Coffee Futures Market News and Commentary
March arabica coffee (KCH2) on Wednesday closed up +4.85 (+2.02%), and Mar ICE Robusta coffee (RMH22) closed up +30 (+1.37%).
On Wednesday, coffee prices closed moderately higher on signs of tighter U.S. supplies after the Green Coffee Association reported that U.S. Dec green coffee inventories fell -2.4% y/y to 5.83 mln bags, a 6-month low. Arabica also garnered support Wednesday from strength in the Brazilian real (^USDBRL) which rallied to a 2-month high against the dollar. A stronger real discourages export selling from Brazil's coffee producers.
On Tuesday, coffee prices fell after Conab projected Brazil 2022 coffee production would climb +16.8% y/y to 55.7 mln bags. Robusta posted a 1-3/4 month low Tuesday and was on the defensive since last Thursday on signs the robusta supply situation was improving after the Vietnam General Department of Customs reported that Vietnam Dec coffee exports surged +57.6% m/m to 169,349 MT. Vietnam is the world's top producer... Read more