Robusta Coffee 10-T Jul '24 (RMN24)
Robusta Coffee 10-T Futures Market News and Commentary
July arabica coffee (KCN26) on Wednesday closed unchanged, and July ICE robusta coffee (RMN26) closed down -39 (-1.12%).
Coffee prices settled mixed on Wednesday, pressured by a stronger dollar. Â Losses in arabica coffee were limited amid a decline in coffee inventories after ICE arabica coffee inventories fell to a 2-month low of 494,508 bags on Tuesday.
Concerns that a prolonged US-Iran war will keep the Strait of Hormuz closed and disrupt global coffee supplies are supportive for coffee prices. Â The closure of the strait has tightened coffee supplies by increasing global shipping rates, insurance, fertilizer, and fuel costs, and raising costs for coffee importers and roasters. Â
Smaller exports from Brazil are supportive of coffee prices. Â On April 14, Cecafe reported that Brazil Mar green coffee exports fell -10% y/y to 2.65 million bags. Â On April 7, Brazil's Trade Ministry reported that Brazil's Mar coffee exports fell -31% y/y to 151,000 MT. Â
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