Coffee May '19 (KCK19)

by cmdtyNewswires - Thu Feb 21, 2:29PM CST
March arabica coffee (KCH19) on Thursday closed down -1.45 (-1.49%) and March ICE robusta coffee (RMH19) closed down -12 (-0.79%). Coffee prices moved lower Thursday with Mar arabica coffee at a 2-month nearest-futures low and Mar robusta coffee at a 1-week low. A decline in the Brazilian real to a 1-week low against the dollar Thursday pressured coffee prices as the weaker real encourages exports by Brazil's coffee producers. Coffee prices also remain under pressure on signs of ample rain in Brazil's coffee-growing regions. Somar Meteorologia reported on Monday that 79.6 mm of rain fell in the past week in Minas Gerais, Brazil's biggest arabica coffee-growing region, or 186% of the historical average, which should boost soil moisture levels and coffee yields. Mar robusta coffee is also seeing pressure on signs of increased supplies in Vietnam, the world's biggest robusta producer, after Vietnam's General Department of Customs reported that Vietnam Jan coffee exports rose +19.4% m/m +41.1% y/y to 183,693 MT. Coffee prices are also seeing downward pressure from ample coffee supplies after the International Coffee Organization (ICO) last Monday reported that global coffee exports during Oct-Dec were up +8.1% y/y at 30.9 mln bags. In addition, ICE-monitored coffee inventories are just below the 4-1/2 year high of 2.489 mln bags posted on Jan 23.