Coffee Futures Market News and Commentary
Dec arabica coffee (KCZ21) on Thursday closed up +5.75 (+3.11%), and Nov ICE Robusta coffee (RMX21) closed up +4 (+A0.19%).
Coffee prices on Thursday pushed higher, with arabica rallying sharply to a 3-week high. Arabica is climbing on concern about smaller global supplies. Gains in robusta were limited Thursday on forecasts for heavy rain this week in Vietnam's coffee-producing regions, which should boost soil moisture levels and coffee yields.
Arabica coffee has support on signs of smaller supplies in Brazil after Conab on Tuesday cut its Brazil 2021 arabica coffee production estimate. Brazil's crop forecasting agency Conab on Tuesday cut its Brazil 2021 arabica coffee crop estimate by -8% to a 12-year low of 30.7 mln bags from a May estimate of 33.4 mln bags, down -37% from 48.8 mln bags in 2020. In a bearish factor for robusta, however, Conab raised its Brazil 2021 robusta coffee production estimate by +4.5% to a record 16.1 mln bags from a previous forecast of 1... Read more