Coffee Futures Market News and Commentary
May arabica coffee (KCK21) on Tuesday closed down -1.95 (-1.44%), and May ICE Robusta coffee (RMK21) closed down -15 (-1.02%).
Coffee prices on Tuesday dropped to 1-week lows. Signs of adequate coffee supplies weighed on prices Tuesday for a second day after the International Coffee Organization (ICO) reported on Monday that Oct-Jan global coffee exports rose +3.7% y/y to 41.876 mln bags.
Weakness in the Brazilian real Tuesday also undercut arabica prices. The real fell -0.78% Tuesday to a 3-3/4 month low against the dollar, which provides an incentive for export selling by Brazil's coffee producers.
Coffee prices have rallied sharply over the past two weeks, with May arabica coffee climbing to a 13-1/2 month high last Thursday and the nearest-futures March contract (H21) soaring to a 3-1/2 year high on the outlook for smaller coffee production in Brazil. Rabobank last Tuesday cut its Brazil 2021/22 arabica coffee production estimate to 36 m... Read more