Robusta Coffee 10-T Futures Market News and Commentary
Dec arabica coffee (KCZ21) on Thursday closed down -2.25 (-1.09%), and Nov ICE Robusta coffee (RMX21) closed up +1 (+0.05%).
Coffee prices on Thursday settled mixed. Arabica was under pressure Thursday from weakness in the Brazilian real against the dollar. The real (^USDBRL) on Thursday tumbled to a 6-month low against the dollar. A weaker real encourages export selling by Brazil's coffee producers.
Coffee trading in Brazil has recently stalled as surging freight rates, and coffee prices have prompted coffee roasters to postpone purchases. Also, coffee growers are holding out for higher prices amid surging labor and fertilizer costs.
Signs of robust rain in Brazil have recently pressured arabica coffee prices. Somar Meteorologia on Monday reported that Minas Gerais, a region that accounts for about 30% of Brazil's arabica coffee crop, received 65 mm of rain or 215% of the historical average last week. The all-important flowering period for Brazilian coffee t... Read more