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Barchart
Barchart
Rich Asplund

Robusta Coffee Surges on Supply Concerns

Sep arabica coffee (KCU23) this morning is up +0.15 (+0.09%), and Sep ICE robusta coffee (RMU23) is up +106 (+4.22%).

Coffee prices this morning are moving higher, with robusta up sharply at a 1-week high.  Today's decline in the dollar (DXY00) to a 1-1/2 week low is bullish for most commodity prices, including coffee.  Robusta is also rallying on concerns about tighter global supplies, with Vietnam's coffee harvest this year expected to fall more than -7% to 1.67 MMT, the smallest crop in four years.  Vietnam is the world's largest producer of robusta coffee beans.  In addition, ICE-monitored robusta coffee inventories today fell to a 4-3/4 month low of 5,988 lots.

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