Coffee May '24 (KCK24)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Tuesday closed up +18.65 (+6.71%), and September ICE robusta coffee (RMU26) closed up +94 (+2.64%).
Coffee prices surged on Tuesday, posting 4.5-month highs. Heavy rains in Brazil have delayed the country’s coffee harvest and are raising concerns about the crop. Somar Meteorologia reported on Monday that rainfall in Minas Gerais, Brazil’s biggest coffee-growing region, was 31.3 mm of rain in the week through June 28, or 1,956% of the historical average.Â
Coffee prices have moved sharply higher over the past two weeks as heavy rains in Brazil have disrupted fieldwork and may have lowered coffee crop quality.Â
ICE coffee inventories have trended lower over the past three months, which is also supportive of coffee prices. ICE arabica coffee inventories fell to a 2.25-year low of 377,465 bags on Tuesday. Meanwhile, ICE robusta inventories fell to a 2-year low of 3,631 lots on May 15 but jumped to a 2.75-month high of 4,053 lots on... Read more
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