Coffee Futures Market News and Commentary
Sep arabica coffee (KCU20) on Thursday closed down -1.25 (-1.25%). Sep ICE Robusta coffee (DFU0) closed up +5 (+0.42%).
Coffee prices on Thursday settled mixed. Arabica coffee posted modest losses Thursday on signs of ample supplies after consulting firm Safras & Mercado on Thursday reported that Brazil's coffee farmers sold 40% or 27.44 mln bags of their 2020 coffee crop as of July 7, well above the 5-year average of 30%. Arabica prices remained lower after Citigroup on Thursday cut its second half of 2020 arabica-coffee price forecast to 90 cents a pound from a previous forecast of $1.20 a pound.
Coffee prices still have pressure on concern that a resurgence of the coronavirus pandemic may keep lockdowns in place for longer, undercutting coffee demand from restaurants and cafes.
A positive for coffee prices is tightness in coffee supplies. ICE-monitored arabica coffee inventories on Wednesday fell to a 2-3/4 year low of 1.636 mln bags, and ICE-monitored robust... Read more