Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ19) on Monday closed down -3.45 (-3.15%), and Jan ICE robusta coffee (DFF0) closed down -9 (-0.65%).
Coffee prices moved lower Monday after heavy rain over the weekend in Brazil eased coffee crop concerns. Somar Meteorologia reported Monday that rainfall in Minas Gerais, Brazil's largest arabica coffee growing region, measured 55.2 mm over the past week, or 130% of the historical average.
Concern about tighter supplies has spurred fund buying of coffee over the past 3 weeks as Jan robusta coffee posted a 3-1/4 month high Monday and Dec arabica coffee posted a3-1/2 month high Friday. The International Coffee Organization (ICO) last Tuesday projected a global 2019/20 coffee deficit of -502,00 bags, versus a surplus of +3.7 mln bags in 2018/19. ICO projects that global 2019/20 coffee production will fall -0.9% to 167.4 mln bags and that 2019/20 global coffee consumption will climb +1.5% to 167.9 mln bags.
Current coffee supplies have declined... Read more