Robusta Coffee 10-T Futures Market News and Commentary
May arabica coffee (KCK21) on Monday closed up +0.85 (+0.67%), and May ICE Robusta coffee (RMK21) closed unchanged.
Coffee prices on Monday closed steady to moderately higher, with arabica at a 2-week high. Dry conditions in Brazil have provided support to coffee prices on Monday after Somar Meteorologia reported that rain last week in Minas Gerais, Brazil's largest arabica growing region, measured 4.7 mm, or only 22% of the historical average.
Coffee prices also have support from supply concerns after Citigroup said last Tuesday that arabica coffee would have a "sizable" deficit of -7.5 mln bags for the 2021/22 crop cycle. Coffee prices also have support due to dry conditions in Brazil.
Arabica fell back from its best levels Monday on weakness in the Brazilian real (^USDBRL), which fell to a 1-week low against the dollar. A weaker real gives an incentive for Brazil's coffee producers to increase export selling.
A negative fa... Read more