Coffee Futures Market News and Commentary
Sep arabica coffee (KCU20) on Friday closed down -1.55 (-1.32%), and Sep ICE Robusta coffee (DFU0) closed up +25 (+1.83%).
Coffee prices on Friday settled mixed with arabica at a 1-week low. Arabica coffee was under pressure Friday on weakness in the Brazilian real against the dollar. The real fell by -1.71% against the dollar Friday to a 3-week low, which encourages export selling by Brazil's coffee producers.
Coffee prices on Wednesday rallied sharply with arabica at a 4-1/4 month high and robusta at a 7-3/4 month high on the outlook for a global coffee deficit. The ICO on Wednesday said it now sees a 2019/20 global coffee deficit of -486,000 bags compared with a June projection for a surplus of +1.85 million bags. The ICO also reported that global Oct-Jun coffee exports fell -5.1% y/y to 95.36 mln bags.
Coffee supplies continue to tighten, which is bullish for coffee prices, as ICE-monitored arabica coffee inventories on Thursday dropped to a 3-year low of 1.... Read more