Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ20) on Tuesday closed down -1.35 (-1.21%). Jan ICE Robusta coffee (RMF21) closed down -5 (-0.37%).
Coffee prices on Tuesday posted moderate losses, with arabica falling to a 1-3/4 month low. Signs of bigger coffee supplies undercut prices after Conab on Tuesday said it sees Brazil 2020 arabica coffee output at 47.4 mln bags, up +38% y/y and above a previous estimate of 46 mln bags.
Coffee prices were already on the defensive on an improving weather outlook in Brazil and Vietnam. Somar Meteorologia on Monday said that Minas Gerais, Brazil's largest arabica coffee growing region, may receive 20 mm of rain through Wednesday, which will aid coffee flowering and boost the yield of Brazil's 2020/21 coffee crop. Vietnam's National Weather Forecast Center said on Monday that the Central Highlands, Vietnam's prime coffee-producing region, will receive rain through Sep 30.
Arabica coffee remained under pressure Tuesday on weakness in the Brazilian r... Read more