Coffee Futures Market News and Commentary
March arabica coffee (KCH24) on Tuesday closed up +4.05 (+2.40%), and Jan ICE robusta coffee (RMF24) closed down -7 (-0.27%).
Coffee prices on Tuesday settled mixed, with Mar arabica climbing to a 1-1/2 week high and nearest-futures (Z23) climbing to a 5-1/4 month high. Shrinking ICE coffee inventories are bullish for coffee prices factor as ICE-monitored arabica coffee inventories on November 16 fell to a 24-year low of 289,699 bags. Meanwhile, on Tuesday, ICE-monitored robusta coffee inventories were at 4,181 lots, moderately above the record low of 3,374 lots posted on August 31.
Strength in the Brazilian real (^USDBRL) is another supportive factor for coffee prices. The real on Tuesday climbed to a 1-week high against the dollar, discouraging export selling from Brazil's coffee producers.
On the negative side, last Wednesday, the USDA's Foreign Agriculture Service (FAS) projected that Brazil's 2023/24 arabica production would climb +12.8% y/y to 44.9 mln b... Read more