Robusta Coffee 10-T Futures Market News and Commentary
Sep arabica coffee (KCU21) on Friday closed down -4.65 (-2.40%), and Sep ICE Robusta coffee (RMU21) closed up +10 (+0.53%).
Coffee prices on Friday settled mixed with robusta climbing to a fresh 3-1/2 year high. Coffee prices Friday morning initially extended this week's parabolic rally, with arabica climbing to a new 6-1/2 year nearest-futures high on concern about another bout of frost to hit Brazil's coffee-growing regions next week. However, coffee prices fell back from their best levels, and arabica turned lower after updated weather forecasts showed reduced chances for frost next week in Brazil's coffee-growing areas. Arabica coffee prices have surged more than +34% this week on concern that Brazil's coffee crops this year will be decimated by the twin risks of drought and frost.
Rural Clima on Wednesday said that damage to coffee trees from frost in Minas Gerais was "very significant" after parts of South Minas Gerais saw the coldest temperatures in 27 years. ... Read more