Coffee Sep '22 (KCU22)
Coffee Futures Market News and Commentary
July arabica coffee (KCN26) on Tuesday closed up +4.25 (+1.49%), and July ICE robusta coffee (RMN26) closed up +14 (+0.42%).
Coffee prices moved higher on Tuesday, with arabica up sharply at a 1-week high. Â Strength in the Brazilian real is supporting coffee prices, as the real (^USDBRL) surged to a 2.25-year high against the dollar on Tuesday. Â The stronger real discourages export sales from Brazil's coffee farmers. Â
Coffee prices also have support with the ongoing closure of the Strait of Hormuz, which is disrupting global coffee supplies. Â The closure of the strait has tightened coffee supplies by increasing global shipping rates, insurance, fertilizer, and fuel costs, and raising costs for coffee importers and roasters. Â
Expectations of a larger Brazilian coffee crop are negative for prices. Â Last Thursday, the Coffee Trading Academy projected Brazil's 2026/27 coffee harvest will increase by 12% y/y to 71.4 million bags. Â On March 19, Marex Group Plc proje... Read more
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