Coffee Futures Market News and Commentary
March arabica coffee (KCH23) on Friday closed up +2.75 (+1.65%), and Mar ICE robusta coffee (RMH23) closed up +59 (+2.96%).
Coffee prices Friday extended their 2-week long rally, with arabica posting a 3-1/2 week high and robusta posting a 3-month high. Arabica coffee on Friday garnered early support from a rally in the Brazilian real (^USDBRL) to a 2-1/2 month high against the dollar, although the real later Friday gave up its gains and turned lower. The stronger real discourages export selling from Brazil's coffee producers. Gains in arabica accelerated Friday after prices climbed above their 50-day moving average, which sparked technical buying.
Robusta also found support Friday on shrinking supplies after ICE-monitored robusta coffee inventories fell to 6,219 lots, the fewest since contract rules changed in 2016.
An excessive short position in arabica coffee futures could fuel short covering pressures after last Friday's weekly Commitment of Traders (COT) re... Read more