Robusta Coffee 10-T Nov '23 (RMX23)
Robusta Coffee 10-T Futures Market News and Commentary
May arabica coffee (KCK26) today is up +1.60 (+0.53%), and May ICE robusta coffee (RMK26) is up +27 (+0.81%).
Coffee prices are moving higher today, with arabica climbing to a 2-week high. Â Below-average rainfall in Brazil may curb coffee yields and is pushing prices higher today. Â Somar Meteorologia reported today that Brazil's largest arabica coffee-growing area, Minas Gerais, received 4.2 mm of rain last week, or only 20% of the historical average.
Tightness in robusta coffee supplies is supportive for robusta prices. Â ICE robusta inventories fell to a 1.25-year low of 3,955 lots today. Â However, rising ICE inventories are also pressuring arabica coffee prices as ICE-monitored arabica inventories rose to a 6.25-month high of 585,621 bags on March 18.
The closure of the Strait of Hormuz has disrupted global shipping and tightened global coffee supplies. Â The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs f... Read more
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