Coffee Futures Market News and Commentary
Sep arabica coffee (KCU20) on Thursday closed down -4.55 (-3.74%), and Sep ICE Robusta coffee (DFU0) closed down -11 (-0.80%).
Coffee prices on Thursday retreated as strength in the Brazilian real against the dollar sparked long liquidation in coffee futures. The real tumbled -1.22% against the dollar on Thursday, which encourages export selling by Brazil's coffee producers.
Coffee prices on Wednesday rallied sharply with arabica at a 4-1/4 month high and robusta at a 7-3/4 month high on the outlook for a global coffee deficit. The ICO on Wednesday said it now sees a 2019/20 global coffee deficit of -486,000 bags compared with a June projection for a surplus of +1.85 million bags. The ICO also reported that global Oct-Jun coffee exports fell -5.1% y/y to 95.36 mln bags.
Coffee supplies continue to tighten, which is bullish for coffee prices, as ICE-monitored arabica coffee inventories on Wednesday dropped to a 3-year low of 1.523 mln bags, and ICE-monitored robu... Read more