Coffee Futures Market News and Commentary
March arabica coffee (KCH2) on Friday closed down -5.75 (-2.36%), and Mar ICE Robusta coffee (RMH22) closed down -14 (-0.63%).
Coffee prices on Friday posted moderate losses. Signs of increased farmer selling in Brazil boosted coffee supplies and weighed on prices after Safras & Mercado reported that Brazilian coffee farmers sold 32% of their 2022/23 coffee crop as of Jan 14, well above the 19% farmers sold a year earlier.
Arabica rallied to a 1-1/2 month high Wednesday on signs of smaller U.S. supplies after the Green Coffee Association reported that U.S. Dec green coffee inventories fell -2.4% y/y to 5.83 mln bags, a 6-month low. Arabica also has support from strength in the Brazilian real (^USDBRL) which rallied to a 3-1/2 month high against the dollar Thursday. A stronger real discourages export selling from Brazilian coffee producers.
Robusta posted a 1-3/4 month low Tuesday on signs the robusta supply situation was improving after the Vietnam General Dep... Read more