Coffee Futures Market News and Commentary
Sep arabica coffee (KCU21) on Thursday closed down -0.50 (-0.32%), and Sep ICE Robusta coffee (RMU21) closed up +27 (+1.66%).
Coffee prices on Thursday settled mixed with robusta climbing to a 2-week high. Concern about reduced robusta coffee supplies from Vietnam, the world's largest robusta producer, has sparked has fund buying of robusta futures. A lack of shipping containers in Asia has limited robusta exports from Vietnam after Vietnam's General Statistics Office reported last Thursday that Vietnam's Jan-May coffee exports fell -12% y/y to 715,263 MT.
Arabica coffee has support from strength in the Brazilian real (^USDBRL), which rallied to a fresh 1-year high against the dollar Thursday. The stronger real discourages export selling from Brazil's coffee producers.
Robusta coffee fell to a 3-week low Tuesday after the USDA's bi-annual coffee report on Monday projected 2021/22 global robusta production would climb +4.5% y/y to 77 mln bags.
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