Coffee Futures Market News and Commentary
May arabica coffee (KCK20) on Friday closed down -8.80 (-7.06%), and May ICE Robusta coffee (DFK0) closed down -32 (-2.58%).
Coffee prices on Friday sold off sharply and posted 1-week lows on an expected surge in coffee supplies. Thursday's data from the ICE exchange showed that there were 40,157 bags of coffee awaiting assessment from the exchange to be included in warehouse inventories. That's up from 2,200 bags at the start of last week. The ICE Exchange last week had said that due to the coronavirus pandemic, coffee grading was disrupted at ICE-approved warehouses. The disruption caused ICE to say that it could no longer ensure that the sampling and grading process will be completed in time for the expiration of the May coffee futures contracts.
Earlier in the week, arabica coffee on Wednesday rose to a 2-1/2 month high and robusta coffee rose to a 1-1/2 week high on concern about supply disruptions in South America. Brazil's Sao Paulo state began a 15-day quaranti... Read more