Robusta Coffee 10-T Futures Market News and Commentary
May arabica coffee (KCK20) on Thursday closed up +3.35 (+2.89%), and May ICE Robusta coffee (DFK0) closed up +38 (+3.25%).
Coffee prices on Thursday moved higher on robusta supply concerns after the Vietnamese government ordered a 15-day nationwide lockdown, which may lead to disruption of coffee supplies to delivery points in Vietnam, the world's largest robusta coffee producer. Vietnam's General Statistics Office reported last Friday that Vietnam's Jan-Mar coffee exports fell -3.9% y/y to 469,000 MT.
Coffee prices also saw support from dwindling U.S. coffee inventories on the news that ICE-monitored coffee inventories fell to a 1-3/4 year low Wednesday of 1.948 mln bags.
A slowdown in global coffee exports is supportive for prices after ICO reported Wednesday that global coffee exports during Oct-Feb fell -3.4% y/y to 50.97 mln bags.
Coffee prices continue to be undercut by extreme weakness in the Brazilian real. The real on Wednesday fell -0.53% and po... Read more