Coffee Sep '26 (KCU26)
Coffee Futures Market News and Commentary
September arabica coffee (KCU26) on Monday closed down -4.25 (-1.27%), and September ICE robusta coffee (RMU26) closed down -18 (-0.47%).
Coffee prices were under pressure on Monday amid forecasts for dry weather this week in Brazil’s coffee-growing regions, which should allow the pace of the country’s coffee harvest to accelerate.Â
Price volatility in coffee markets is exacerbated by illiquid trading conditions. After Intercontinental Exchange (ICE) raised margin requirements for coffee futures trading twice last week, liquidity has dried up, prompting many commodity funds to close their positions and leading to excessive one-way price moves.Â
An excessively long position in ICE robusta coffee by funds can exacerbate any price downturn. Last Friday’s weekly Commitment of Traders (COT) data showed funds boosted their long positions in ICE robusta coffee by +5,607 in the week ended July 7 to 44,195 net-long positions, the most in more than two years.Â
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