Coffee Dec '13 (KCZ13)
Coffee Futures Market News and Commentary
July arabica coffee (KCN26) on Thursday closed up +11.20 (+3.87%), and May ICE robusta coffee (RMK26) closed up +153 (+4.32%).
Coffee prices rallied sharply on Thursday and posted 4-week highs. Â Concerns that a prolonged US-Iran war will keep the Strait of Hormuz closed and disrupt global coffee supplies are lifting coffee prices. 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
Strength in the Brazilian real (^USDBRL) is also supporting gains in coffee prices. Â The real rallied to a 2-year high against the dollar on Thursday, discouraging export sales from Brazil's coffee producers.
Signs of tighter robusta coffee supplies are bullish for robusta coffee prices after ICE robusta inventories fell to a 16-month low of 3,755 lots on Tuesday.
On Tuesday, arabica coffee fell to a 7-week low amid expectations of a record Brazil... Read more
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