Robusta Coffee 10-T Futures Market News and Commentary
Mar arabica coffee (KCH20) on Wednesday closed up +4.80 (+4.52%), and Jan ICE robusta coffee (DFF0) closed up +46 (+3.43%).
Coffee prices rallied Wednesday with arabica coffee finding support on strength in the Brazilian real, which rose +0.7% against the dollar Wednesday and sparked short-covering in arabica coffee futures. The real on Wednesday recovered somewhat from Tuesday's 4-year low.
Robusta coffee found support Wednesday on the comment by Vietnam's Quang Minh Coffee Trading Group that low prices are discouraging Vietnam's coffee farmers from selling their beans. Vietnam is the world's largest producer of robusta coffee.
Current arabica coffee supplies continue to decline, which is also providing support to coffee prices, after ICE-monitored arabica coffee inventories fell to a 14-3/4 month low of 2.16 million bags on Tuesday.
On Tuesday, Mar arabica coffee fell to a 2-week low and Jan robusta coffee dropped to a 1-1/2 week low on reduced crop con... Read more