Coffee Jul '16 (KCN16)
Coffee Futures Market News and Commentary
December arabica coffee (KCZ26) closed up +3.20 (+1.03%) on Friday, and November ICE robusta coffee (RMX26) closed down -26 (-0.73%).
Coffee prices settled mixed on Friday as they consolidated above Thursday’s lows. Arabica has support on tight supplies after ICE arabica coffee inventories fell to a 27-year low on Friday. Robusta coffee is under pressure after ICE robusta coffee inventories jumped to a 9-month high on Tuesday.
On Thursday, arabica coffee fell to a 3-week low, and robusta dropped to a 2-month low on the outlook for Brazil’s coffee harvest to add more supply to the market. Most warehouses in Brazil are no longer accepting new coffee supplies as space fills up, suggesting farmers holding back sales in hopes of higher prices will have to increase coffee sales as storage space dwindles.
On Tuesday, arabica coffee posted a 7.5-month high and robusta posted a 3-week high due to the slow pace of Brazil’s coffee harvest. Brazil’s Cooxupe co-op reported... Read more
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