Coffee Futures Market News and Commentary
Mar arabica coffee (KCH21) on Friday closed up +0.80 (+0.63%), and March ICE Robusta coffee (RMH21) closed up +21 (+1.58%).
Coffee prices on Friday pushed higher, with arabica coffee at a 4-month nearest-futures high and robusta coffee at a 1-week high on concern that dry conditions in Brazil will worsen. Maxar late Thursday said that dry conditions would intensify across Minas Gerais, Brazil's largest arabica-growing region, over the next 6 to 10 days, which could cause strain to coffee trees and harm cherry growth.
Arabica prices were already underpinned by new Brazil coffee production estimates. Marex Solutions on Thursday estimated that Brazil's 2021 arabica coffee output would fall between 30% and 50% due to excessive heat and scant rainfall in Minas Gerais. However, Marex Solutions on Thursday projected that Brazil's 2021 robusta crop would increase by 10% to 15% versus last year's harvest.
Coffee prices have support on Tuesday's pro... Read more