Coffee Futures Market News and Commentary
May arabica coffee (KCK21) on Wednesday closed up +2.05 (+1.58%), and May ICE Robusta coffee (RMK21) closed up +21 (+1.56%).
Coffee prices on Wednesday settled moderately higher, with arabica at a 3-1/2 week high and robusta at a 2-week high. A decline in Brazil's coffee exports and excessive dryness in Brazil continues to support gains in coffee. Cecafe on Tuesday reported that Brazil's March total coffee exports (green, roasted, and soluble) fell -1.6% y/y to 3,438,538 bags. Also, Somar Meteorologia on Monday reported that rain last week in Minas Gerais, Brazil's largest arabica growing region, measured 4.7 mm, or only 22% of the historical average.
Coffee prices also have support from supply concerns after Citigroup said last Tuesday that arabica coffee would have a "sizable" deficit of -7.5 mln bags for the 2021/22 crop cycle. Coffee prices also have support due to dry conditions in Brazil.
A negative factor for coffee was last Thurs... Read more