Coffee Futures Market News and Commentary
Mar arabica coffee (KCH21) on Wednesday closed up +1.25 (+1.08%), and Jan ICE Robusta coffee (RMF21) closed up +13 (+0.96%).
Coffee prices on Wednesday posted moderate gains on short-covering after Rabobank on Wednesday forecasted that the global 2021/22 coffee surplus would narrow to +2.2 mln bags from a +10.2 mln bag surplus in 2020/21 due to a projected decline in Brazil coffee production. Rabobank said Brazil 2021/22 coffee production would fall -10% y/y to 60.7 mln bags as coffee trees enter the lower-yielding half of the biennial cycle. There is also concern about the coffee crop due to insufficient rain in Brazil's coffee-growing regions.
On Tuesday, arabica coffee fell to a 1-week low, and robusta fell to a 2-week low Wednesday before recovering. A rebound in coffee inventories weighed on prices after ICE-monitored arabica coffee inventories on Tuesday rose to a 2-3/4 month high of 1.247 mln bags, recovering further from the 20-year low of 1.096... Read more