Robusta Coffee 10-T Nov '23 (RMX23)
Robusta Coffee 10-T Futures Market News and Commentary
July arabica coffee (KCN26) on Friday closed up +3.25 (+1.28%), and July ICE robusta coffee (RMN26) closed up +131 (+3.78%).
Coffee prices on Friday extended Thursday’s rally amid concern that persistent rain in Brazil will delay the coffee harvest. Forecaster Vaisala said moderate to heavy rainfall is forecast across Brazil’s coffee-growing regions this week, and the showers could extend into next week.
Coffee prices are also seeing support from hopes for stronger coffee demand after news that the University of Michigan’s June US Consumer Sentiment Index rose +4.1 to 48.9, stronger than expectations for a rise to 46.0.Â
ICE coffee inventories have trended lower over the past three months, which is supportive of coffee prices. ICE arabica coffee inventories fell to a 6.75-month low of 398,940 bags on Friday. Meanwhile, ICE robusta inventories fell to a 2-year low of 3,631 lots on May 15 and were mildly above that level on Friday at 3,761 lots.
Concerns that... Read more
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