Coffee Jul '23 (KCN23)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) closed up +13.90 (+4.32%) on Friday, and September ICE robusta coffee (RMU26) closed down -11 (-0.29%).
Coffee prices settled mixed on Friday, with arabica up sharply at a 1-week high. Friday’s decline in the dollar index ($DXY) to a 7-week low is bullish for coffee prices. Also, arabica coffee supplies continue to tighten as ICE-monitored arabica coffee inventories fell to a 2.5-year low on Friday.
Arabica has support due to the slow pace of Brazil’s coffee harvest. The harvest among members of Cooxupe co-op was 67.3% complete as of July 31, behind the year-earlier pace of 74.2%. On July 17, Safras & Mercado reported that Brazil’s 2026/27 coffee harvest was 64% complete as of July 15, behind last year’s comparable level of 77% and the five-year average of 70%.
Rising inventories are weighing on robusta coffee as ICE robusta inventories climbed to a 4.5-month high of 4,261 lots on Friday. By contrast, a bullish factor for arab... Read more
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