Coffee Jul '21 (KCN21)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Tuesday closed up +8.95 (+3.35%), and July ICE robusta coffee (RMN26) closed down -9 (-0.25%).
Coffee prices settled mixed on Tuesday, with arabica rallying sharply to a 6-week high. Renewed rains in Brazil are delaying the country’s coffee harvest and pushing arabica prices higher. Meteorologist Climatempo said Tuesday that a new cold front is supporting rains over southern Brazil, impacting field activities and potentially affecting the quality of the coffee crop.Â
Robusta coffee fell to a 1-week low on Tuesday as the reopening of the Strait of Hormuz eases supply disruptions, which are bearish for prices. The reopening of the Strait should begin to lower global shipping rates, insurance, fertilizer, and fuel costs, thereby lowering costs for coffee importers and roasters.Â
ICE coffee inventories have trended lower over the past three months, which is supportive of coffee prices. ICE arabica coffee inventories fell to a 2.25... Read more
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