Robusta Coffee 10-T Futures Market News and Commentary
July arabica coffee (KCN22) on Friday closed down -1.40 (-0.65%), and July ICE Robusta coffee (RMN22) closed down -18 (-0.87%).
Coffee prices Friday settled moderately lower as frost risks for Brazil eased. Updated weather forecasts Friday called for slightly warmer temperatures for next week in Brazil than were initially forecast, which reduces the chance of frost developing in Brazil's coffee-growing regions. NOAA previously said on Wednesday that temperatures in southern Brazil, an area that includes many of the country's coffee-growing regions, might be hit by frost by May 16 and that temperatures could remain well below normal through May 19.
On Tuesday, arabica fell to a 6-month low, and robusta dropped to a 2-month low as dry conditions eased in Brazil. Somar Meteorologia reported Monday that there was 12.4 mm of rainfall (161% of the historical average) in the Minas Gerais area last week, an area that accounts for about 30% of Brazil's arabica crop.
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