Coffee Futures Market News and Commentary
Mar arabica coffee (KCH20) on Thursday closed up +2.05 (+1.52%), and Jan ICE Robusta coffee (DFF0) closed up +22 (+1.56%).
Coffee prices moved higher Thursday with Mar arabica coffee at a new 13-month high and nearest-futures Dec arabica coffee at a 2-1/4 year high. Coffee prices have rallied sharply this week as the outlook for tighter global coffee inventories has fueled fund buying of coffee futures. The International Coffee Organization (ICO) is forecasting a global 2019/20 coffee deficit of -502,000 bags compared with a +3.7 million bag global surplus in 2018/19.
Strength in the Brazilian real also gave arabica coffee prices a lift as the Brazilian real climbed +0.42% on Thursday to a new 1-month high against the dollar. A stronger real discourages export selling from Brazil's coffee producers.
Arabica coffee also has support on Tuesday's data from Guatemala's National Coffee Association showing that Guatemala Nov coffee exports fell -19.2% y/y to 49,910 ba... Read more