Robusta Coffee 10-T Futures Market News and Commentary
March arabica coffee (KCH23) on Friday closed down -5.10 (-2.87%), and Mar ICE robusta coffee (RMH23) closed down -18 (-0.88%).
Coffee prices Friday posted moderate losses. Concerns about weak coffee demand in China sparked long liquidation in coffee futures after Starbucks on Friday reported a 29% drop in China sales in the first quarter as a spike in Covid infections led to mobility restrictions and store closures. Also, weakness in the Brazilian real (^USDBRL) Friday weighed on coffee prices after the real fell to a 1-week low. A weaker real encourages export selling from Brazil's coffee producers.
On Wednesday, arabica posted a 3-month high, and robusta on Tuesday posted a 3-1/2 month high on concerns about smaller global coffee supplies. Rabobank cut its global 2023/24 coffee surplus estimate to +1.6 min bags from a November estimate of +4.0 mln bags. Also, Volcafe said because of weak flower blossoms on coffee trees in the Minas Gerais coffee-growing region,... Read more