Robusta Coffee 10-T Futures Market News and Commentary
March arabica coffee (KCH24) on Friday closed down -0.35 (-0.29%), and Jan ICE robusta coffee (RMF24) closed down -20 (-0.77%).
Coffee prices Friday posted moderate losses. An increase in world coffee supplies is bearish for prices after the International Coffee Organization (ICO) reported Friday that global Oct coffee exports rose +0.9% y/y to 9.53 million bags. Friday's rally in the dollar index (DXY00) to a 3-week high also weighed on coffee prices.
Coffee prices have been under pressure this week as supply fears receded. On Tuesday, the ICO projected 2023/24 global coffee production will climb +5.8% y/y to 178 million bags due to an exceptional off-biennial crop year. ICO also projects global 2023/24 coffee consumption will rise +2.2% y/y to 177 million bags, resulting in a 1 million bag coffee surplus.
Signs of higher coffee exports are bearish for prices. Last Friday, Brazil's Trade Ministry reported that Brazil's Nov coffee exports (not roasted) rose +8... Read more