Coffee Futures Market News and Commentary
Mar arabica coffee (KCH21) on Friday closed up +7.05 (+6.02%), and Jan ICE Robusta coffee (RMF21) closed up +2 (+0.14%).
Coffee prices on Friday rallied, with arabica at a 2-1/2 month high and robusta at a 1-week high. The outlook for reduced coffee production in Brazil sparked fund buying of arabica coffee futures on Friday. Volcafe Ltd projected that Brazil 2021/22 coffee production will fall -33% y/y to 34.2 million bags as Brazil's arabica trees enter the lower-yielding half of a biennial cycle and that losses in coffee output will be exacerbated from excessive dryness in Brazil's coffee-growing regions. Volcafe also projects that the slump in Brazil coffee output will drive the global arabica market into a record -11 mln bag deficit in 2021/22.
Arabica coffee has support from recent dryness in Brazil's coffee-growing regions. Somar Meteorologia reported on Monday that rain in Minas Gerais, Brazil's largest arabica coffee-growing region, measured... Read more