Robusta Coffee 10-T Futures Market News and Commentary
July arabica coffee (KCN22) on Monday closed up +10.90 (+5.10%), and July ICE Robusta coffee (RMN22) closed up +47 (+2.30%).
Coffee prices Monday rallied sharply, with arabica posting a 3-week high and robusta climbing to a 1-week high. Ramped-up risks of frost in Brazil that could damage the country's coffee crop boosted prices Monday. Climatempo said Monday that a cold front Wednesday will advance to Minas Gerais, potentially producing frost and damaging arabica coffee crops in the region.
Concern about smaller coffee supplies from Vietnam is supportive of robusta prices. The Vietnam Coffee and Cocoa Association warned last Wednesday that the high fertilizer prices might force coffee farmers to reduce their fertilizer usage, which could lead to a 10% drop in coffee production next season. Vietnam is the world's largest producer of robusta coffee beans.
Last Tuesday, arabica fell to a 6-1/4 month low, and robusta dropped to a 2-1/4 month low as dry condition... Read more