Robusta Coffee 10-T Futures Market News and Commentary
March arabica coffee (KCH24) on Wednesday closed down -8.50 (-4.63%), and Jan ICE robusta coffee (RMF24) closed down -21 (-0.81%).
Coffee prices Wednesday retreated, with arabica coffee falling sharply as concerns about global coffee supplies recede. On Tuesday, the International Coffee Organization (ICO) projected 2023/24 global coffee production will climb +5.8% y/y to 178 million bags due to an exceptional off-biennial crop year. ICO also projects global 2023/24 coffee consumption will rise +2.2% y/y to 177 million bags, resulting in a 1 million bag coffee surplus.
Signs of higher coffee exports are bearish for prices. Brazil's Trade Ministry reported last Friday that Brazil's Nov coffee exports (not roasted) rose +8.5% y/y to 235,000 MT. Also, Honduras, Central America's biggest coffee-producing country, reported its Nov coffee exports jumped +63% y/y to 110,413 bags.
Arabica coffee prices last Friday posted a 6-month high on a new rule from the Intercontin... Read more