Arabica Coffee 4/5 Sep '14 (XFU14)
Arabica Coffee 4/5 Futures Market News and Commentary
July arabica coffee (KCN26) on Tuesday closed up +14.30 (+5.44%), and July ICE robusta coffee (RMN26) closed up +62 (+1.72%).
Coffee prices surged to 5-week highs on Tuesday and settled sharply higher. Coffee prices are supported by concerns 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.
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 396,957 bags on Tuesday. Meanwhile, ICE robusta inventories fell to a 2-year low of 3,631 lots on May 15 but jumped to a 2.25-month high of 3,991 lots on Tuesday.
Concerns that an El Niño weather pattern could hurt Brazil’s coffee crop next year are supportive for prices. Coffee trader Commercial said the El Niño weather pattern may delay rains in Brazil this September and October, when t... Read more
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