Coffee Jul '24 (KCN24)
Coffee Futures Market News and Commentary
December arabica coffee (KCZ26) closed down -6.65 (-2.02%) on Friday, and September ICE robusta coffee (RMU26) closed down -104 (-2.81%).
Coffee prices settled sharply lower on Friday, with robusta falling to a 1-week low. Coffee is under pressure on expectations that drier weather in Brazil will speed up the country’s coffee harvest. Robusta is also falling amid rising inventories as ICE robusta inventories climbed to an 8.75-month high of 4,732 lots on Friday.
On Wednesday, Brazil’s Cooxupe co-op reported that 81.1% of the harvest was complete as of Aug 14, up 7 points from the prior week but still down slightly from 86.1% a year earlier.
Below-normal rainfall in Brazil should speed up the pace of the country's coffee harvest, a bearish factor for prices. Somar Meteorologia reported on Monday that 0.6 mm of rain, or 11% of the historical average, fell in the week ended August 16 in Brazil's Minas Gerais, the country's main arabica-coffee growing region.
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