Robusta Coffee 10-T Futures Market News and Commentary
March arabica coffee (KCH2) on Friday closed up +6.75 (+2.85%), and Jan ICE Robusta coffee (RMF22) closed up +51 (+2.18%).
Coffee prices on Friday rallied sharply, with robusta soaring to a 10-1/4 year nearest-futures high on tighter global supplies. Fund buying on Friday supported gains in robusta as record high freight rates and a lack of container availability have restricted robusta exports out of Vietnam, Brazil, and Indonesia, the world's top three exporters of robusta coffee.
A decline in global coffee supplies supports prices after the International Coffee Organization (ICO) on Thursday reported that Oct global coffee exports fell -4.4% y/y to 9.68 mln bags.
Robusta coffee has support on tight supplies from Vietnam. Nearest-futures (RMX1) robusta surged to a 10-year high Nov 19 as the shortage of shipping containers has reduced Vietnam's coffee exports. Vietnam Jan-Nov coffee exports are down -4.4% y/y at 1.4 MMT. Also, the USDA's FAS cut its Vietnam 20... Read more