Robusta Coffee 10-T Futures Market News and Commentary
Mar arabica coffee (KCH20) on Friday closed down -2.45 (-2.18%), and Mar ICE Robusta coffee (DFH0) closed down -48 (-3.51%).
March arabica coffee prices on Friday traded sharply lower but remained above Tuesday's 2-month low. Robusta coffee fell back from at a 3-week high as fund short-covering dried up.
Arabica coffee was under pressure Friday on weakness in the Brazilian real which fell -0.41% against the dollar Friday but remained modestly above Tuesday's 1-1/2 month low against the dollar. A weaker real encourages export selling by Brazil's coffee producers and is bearish for sugar prices.
Coffee prices have trended lower over the past 5 weeks with arabica coffee falling to a 2-month low Tuesday on the outlook for a rebound in Brazil coffee output. Conab, Brazil government's forecasting agency, said on Jan 16 that it sees Brazil 2020/21 coffee production rising to 57.2-62.0 mln bags, up as much as +25.8% from 49.3 mln bags in 2019/20 as the crop moves into t... Read more