Robusta Coffee 10-T Futures Market News and Commentary
Sep arabica coffee (KCU20) on Friday closed down -1.35 (-1.37%). Sep ICE Robusta coffee (DFU0) closed unchanged.
Coffee prices on Friday settled steady to lower. Arabica coffee fell back on negative carry-over from Thursday when consulting firm Safras & Mercado reported that Brazil's coffee farmers had sold 40% or 27.44 mln bags of their 2020 coffee crop as of July 7, well above the 5-year average of 30%. Also, Citigroup on Thursday cut its second-half-2020 arabica coffee price forecast to 90 cents a pound from a previous forecast of $1.20 a pound.
Robusta coffee recovered its losses and closed unchanged on signs of tighter supplies after ICE-monitored robusta coffee inventories on Friday fell to a 1-1/2 year low.
Coffee prices still have pressure on concern that a resurgence of the coronavirus pandemic may keep lockdowns in place for longer, undercutting coffee demand from restaurants and cafes.
A positive for arabica coffee prices is tightness in coffee... Read more