Coffee Sep '12 (KCU12)
Coffee Futures Market News and Commentary
July arabica coffee (KCN26) is up +2.30 (+0.91%), and July ICE robusta coffee (RMN26) is up +135 (+3.90%).
Coffee prices today extended Thursday’s rally amid concern that persistent rain in Brazil will delay the coffee harvest. Forecaster Vaisala said moderate to heavy rainfall is forecast across Brazil’s coffee-growing regions this week, and the showers could extend into next week.
Coffee prices are also seeing support from hopes for stronger coffee demand after news that the University of Michigan’s June US Consumer Sentiment Index rose +4.1 to 48.9, stronger than expectations for a rise to 46.0.Â
ICE coffee inventories have trended lower over the past 2.5 months, which is supportive of coffee prices. ICE arabica coffee inventories fell to a 6.5-month low of 402,709 bags on Wednesday. Meanwhile, ICE robusta inventories fell to a 2-year low of 3,631 lots on May 15 but are now mildly above that low on Thursday at 3,713 lots.Â
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