Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ23) on Friday closed down -3.70 (-2.39%), and Nov ICE robusta coffee (RMX23) closed down -3 (-0.12%).
Coffee prices Friday posted moderate losses, with arabica falling to a 1-week low. Forecasts for rain in Brazil have eased drought concerns and sparked long liquidation in coffee futures. Rural Clima Meteorologia on Friday said Brazil should see some rain through next week. Somar Meteorologia reported Monday that Brazil's Minas Gerais region received only 2.5 mm of rain in the past week, or 20% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
Arabica prices also had carryover pressure from Wednesday after Conab, Brazil's crop forecasting agency, raised its 2023 Brazil arabica coffee crop estimate to 38.2 million bags from May's forecast of 37.9 million bags. Robusta coffee is also under pressure after ICE-monitored robusta coffee inventories Thursday rose to a 5-week high of 4,292 lots.
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