Robusta Coffee 10-T Futures Market News and Commentary
July arabica coffee (KCN23) on Wednesday closed up +0.55 (+0.29%), and July ICE robusta coffee (RMN23) closed up +16 (+0.63%).
Coffee prices Wednesday settled moderately higher. Arabica coffee has support from tighter supplies. ICE arabica coffee inventories have steadily declined over the past three months and fell to a 5-1/2 month low Tuesday of 620,633 bags. Wednesday’s rally in the dollar index to a 2-month high limited gains in coffee futures.
Tightness in robusta coffee supplies has sparked fund buying of robusta coffee futures, and on Tuesday, July robusta posted a contract high, and near-futures robusta (K23) posted a record high (data from 2008). Vietnam's General Department of Vietnam Customs reported on May 9 that Vietnam's Apr coffee exports fell -22% m/m at 163,607 MT, and Jan-Apr coffee exports are down -5.5% y/y at 716,580 MT. Vietnam is the world's largest producer of robusta coffee beans. Also, the USDA's Foreign Agriculture Service (FAS) on Monday... Read more