Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ23) on Thursday closed down -3.35 (-2.12%), and Nov ICE robusta coffee (RMX23) closed down -44 (-1.75%).
Coffee prices retreated Thursday on a broader selloff in risk assets after the Federal Reserve signaled higher interest rates for longer following Wednesday's FOMC meeting. Weakness in the Brazilian real was also bearish for coffee prices as the real on Thursday (^USDBRL) dropped to a 1-week low against the dollar. The weaker real encourages export selling by Brazil's coffee producers.
Arabica prices have carryover pressure from Wednesday after Conab, Brazil's crop forecasting agency, raised its 2023 Brazil arabica coffee crop estimate to 38.2 million bags from May's forecast of 37.9 million bags. Robusta coffee is also under pressure after ICE-monitored robusta coffee inventories Thursday rose to a 5-week high of 4,292 lots.
Robusta coffee also had negative carryover from Tuesday after coffee trading firm Sucfina projected that Uganda'... Read more
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