Coffee Sep '18 (KCU18)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Thursday closed down -57.25 (-2.29%), and September ICE robusta coffee (RMU26) closed down -88 (-2.32%).
Coffee prices fell on Thursday after the USDA forecast late Wednesday that global coffee output in the 2026-27 season will rise by +6.0% (10.8 million bags) to a record 189.7 million bags, mainly due to improved growing conditions in Brazil. The USDA expects global arabica production to rise +12% y/y, although robusta production is expected to fall by -0.7% y/y. World ending stocks are expected to rise +1.9 million bags to 26.3 million bags. On June 3, the USDA’s Foreign Agricultural Service (FAS) forecast a record 2026/27 Brazil coffee crop of 71.9 million bags, up +14% y/y.
Coffee prices are also under pressure on the outlook for drier conditions in Brazil’s coffee-growing regions over the near-term, which should accelerate the country’s coffee harvest. However, the slow pace of Brazil’s coffee harvest is still supportive of co... Read more
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