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Barchart
Barchart
Rich Asplund

Coffee Posts Moderate Gains on the Outlook for Reduced Coffee Exports from Vietnam

May arabica coffee (KCK24) on Tuesday closed up +2.40 (+1.29%), and May ICE robusta coffee (RMK24) closed up +48 (+1.40%).

Coffee prices on Tuesday settled moderately higher, with May arabica posting a 2-week high and May robusta posting a contract high.  Robusta coffee prices saw support from Tuesday's projection by the Vietnam Coffee Association that Vietnam's 2023/24 coffee exports will drop -20% y/y to 1.336 MMT as dry weather reduced coffee yields and production.  The strength of robusta prices Tuesday provided carryover support to arabica coffee.  Prices fell back from their best levels after the dollar (DXY00) recovered from early losses and moved higher, which sparked long liquidation in coffee futures.

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