Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ21) on Friday closed down -1.75 (-0.93%), and Nov ICE Robusta coffee (RMX21) closed up +44 (+2.09%).
Coffee prices on Friday settled mixed, with Nov robusta posting a contract high and nearest-futures (U21) climbing to a new 4-year high. Arabica was under pressure Friday from weakness in the Brazilian real against the dollar. The real (^USDBRL) tumbled to a 3-1/2 week low Friday against the dollar, encouraging export selling from Brazil's coffee producers.
Robusta coffee continues to climb as nearest-futures Sep (U21) robusta posted a fresh 4-year high Friday. Robusta has support on concern about supplies from Vietnam, the world's largest robusta producer. A lack of containers to ship coffee from Vietnam will hinder exports for the foreseeable future and is bullish for prices. Also, a record surge in Covid infections in Vietnam prompted Vietnam's Prime Minister to tighten pandemic restrictions and deploy soldiers to the streets in Ho Chi Minh... Read more