Coffee Futures Market News and Commentary
May arabica coffee (KCK20) on Friday closed down -4.45 (-3.73%), and May ICE Robusta coffee (DFK0) closed down -18 (-1.49%).
Coffee prices on Friday closed lower on a fall in the Brazilian real to a record low and on a slightly reduced coffee deficit forecast by the ICO.
Coffee prices continue to be undercut by weakness in the Brazilian real. The real on Friday fell by -1.18% against the dollar and posted a new record low of 5.3225 reals/USD. A weaker real encourages export selling by Brazil's coffee producers.
The International Coffee Organization (ICO) on Friday slightly reduced its global 2019/20 coffee deficit estimate to -474,000 bags from a Feb estimate of -476,000 bags. ICO also said that weak global economic growth this year and rising unemployment will reduce coffee demand and put downward pressure on coffee prices.
A positive for coffee prices was Friday's data from the Colombia Coffee Growers Federation that showed Colombia Mar coffee productio... Read more