Coffee Futures Market News and Commentary
December arabica coffee (KCZ22) on Wednesday closed up +4.35 (+1.94%), and Nov ICE Robusta coffee (RMX22) closed up +28 (+1.28%).
Coffee prices Wednesday erased early losses and moved moderately higher after a weaker dollar (DXY00) sparked short-covering in coffee futures. Tight arabica supplies are also bullish for prices after ICE-monitored arabica coffee inventories Wednesday fell to a 23-year low of 444,699 bags.
Coffee prices Wednesday initially moved lower on signs of abundant rain in Brazil that may promote flowering for next year's coffee crop. Somar Meteorologia reported Monday that Minas Gerais had 28.3 mm of rain last week, or 132% of the historical average. Minas Gerais accounts for about 30% of Brazil's arabica crop.
Coffee harvest pressures in Brazil are a near-term bearish factor for coffee prices. Cooxupe cooperative, one of Brazil's biggest coffee producers, reported last Wednesday that Brazil's coffee harvest was 99.4% completed as of Sep 16.... Read more