Coffee May '11 (KCK11)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Tuesday closed down -32.35 (-9.24%), and September ICE robusta coffee (RMU26) closed down -172 (-4.25%).
Coffee prices settled sharply lower on Tuesday, giving back some of Monday's parabolic rally. The recent rally in coffee prices to Monday's significant highs pushed prices to heavily overbought levels, sparking technical selling that prompted profit-taking. Also, Intercontinental Exchange's action to raise margin requirements for coffee futures trading has fueled long liquidation pressures, which have weighed on prices.
On Monday, arabica coffee soared to a 5.5-month high, and on Tuesday, robusta posted a 5-month high amid a delayed coffee harvest in Brazil. Safras & Mercado reported on Monday that Brazil's 2026/27 coffee harvest is 52% complete as of July 1, behind last year's comparable level of 60% and the five-year average of 55%.Â
Coffee prices are also supported after meteorologist Rural Clima said on Monday that rain... Read more
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