Robusta Coffee 10-T Futures Market News and Commentary
March arabica coffee (KCH2) on Thursday closed up +3.35 (+1.44%), and Jan ICE Robusta coffee (RMF22) closed up +21 (+0.91%).
Coffee prices on Thursday closed moderately higher, with Jan robusta at a contract high. A decline in global coffee supplies supports prices after the International Coffee Organization (ICO) on Thursday reported that Oct global coffee exports fell -4.4% y/y to 9.68 mln bags.
On Tuesday, arabica posted a 1-week low on the outlook for a global coffee surplus. Late Monday, Rabobank projected the global 2022/23 coffee market would be in surplus by +3.3 mln bags, recovering from a deficit of -5.20 mln bags in 2021/22. Rabobank also estimates that global 2022/23 coffee production will climb +8.2% y/y to 177.1 mln bags.
Robusta coffee has support on tight supplies from Vietnam. Nearest-futures (RMX1) robusta surged to a 10-year high Nov 19 as the shortage of shipping containers has reduced Vietnam's coffee exports. Vietnam Jan-Nov coffee export... Read more