Robusta Coffee 10-T Futures Market News and Commentary
Sep arabica coffee (KCU21) on Friday closed down -16.95 (-8.63%), and Sep ICE Robusta coffee (RMU21) closed down -99 (-5.25%).
Coffee prices on Friday sold off sharply and plunged to 1-week lows on an easing of Brazil frost concerns. Patchy frost reached about 80% of Minas Gerais Thursday night and did only limited damage to Brazil's coffee crops, according to World Weather, which sparked massive long liquidation of arabica futures from funds.
Arabica prices are also being weighed down by long liquidation pressures after ICE Futures late Tuesday raised margins on arabica coffee futures for a second time within a week to $9,000 per contract from $7,500, which is likely to discourage speculative positions.
Fund buying on Monday pushed arabica coffee prices to a 6-3/4 year nearest-futures high on concern that the twin risks of drought and frost could decimate Brazil's coffee crops. Coffee trees in Brazil were already weakened by drought and then pummeled by two fr... Read more