Robusta Coffee 10-T Futures Market News and Commentary
December arabica coffee (KCZ22) on Monday closed down -5.80 (-2.62%), and Nov ICE Robusta coffee (RMX22) closed up +20 (+0.93%).
Coffee prices Monday settled mixed, with arabica falling to a 2-week low. Arabica was under pressure Monday on news of abundant rain in Brazil that may promote flowering for next year's coffee crop. Somar Meteorologia reported Monday that Minas Gerais had 51 mm of rain last week, or 185% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
A decline in the dollar index Monday to a 1-week low provided underlying support for coffee prices.
Coffee harvest pressures in Brazil are a bearish factor for coffee prices. Cooxupe cooperative, one of Brazil's biggest coffee producers, reported Sep 21 that Brazil's coffee harvest was 99.4% completed as of Sep 16. Coffee producer sales typically increase during harvest time to make space for storing their newly-picked crops.
A bearish factor for robust... Read more