Coffee futures update – 15/feb/17
Futures were lower as the US Dollar traded a little higher. The cash market in the US seemed quiet. Overall, the market remains under selling pressure due to some forecasts for beneficial rains in all of northern Brazil for this week.
Arabica areas have seen better precipitation and good production is expected, but Espiritu Santo has been so dry that the government is thinking of allowing Robusta imports to cover domestic demand needs. In fact, the Ag Ministry has now asked for permission to begin Robusta imports to cover the short supplies.
The coming rains will benefit the next crop, but the drought stress will be a problem for producers for a couple of years.
Central America is offering all qualities. Differentials appear steady to weak. Brazilian differentials are strong and Colombia differentials are also strong.
Overnight News: Certified stocks are higher today and are about 1.310 million bags. The ICO composite price is now 136.87 ct/lb. Brazil will get mostly dry weather. Temperatures should average near to above normal Colombia should get scattered to isolated showers. Central America and southern Mexico should get mostly dry conditions. Temperatures should average near to above normal. Vietnam exported 140,246 tons of Coffee in January, down 5.2% from December and 20.5% from last year.
Source : Barchart.com by The PRICE Futures Group
