Coffee Futures Market News and Commentary
Mar arabica coffee (KCH20) this morning is down -3.65 (-3.31%), and Mar ICE Robusta coffee (DFH0) is down -9 (-0.68%).
Coffee prices are moving lower this morning with arabica coffee at a 2-1/4 month low and robusta coffee at a 1-week low on concern that the spreading Chinese coronavirus will curb global economic growth and demand for commodities, including coffee.
Arabica coffee was under additional pressure this morning from weakness in the Brazilian real which dropped -0.97% against the dollar today to a 1-3/4 month low against the dollar. A weaker real encourages export selling by Brazil's coffee producers and is bearish for sugar prices.
Another bearish factor for arabica coffee is above-normal precipitation in Brazil after Somar Meteorologia today said that rainfall in Minas Gerais, Brazil's largest arabica-coffee growing region, measured 61.7 mm in the past week, or 112% of the historical average. The above-average rainfall may boost arabica coffee yields... Read more