COFFEE – Arabica
Arabica coffee futures up as Arabica coffee attracted technical buying after the May contract breached its 200-day moving average this season.
Main reason for this renewed buying interest of Arabica is attributed to better climate and crop condition in Arabica areas in Top grower Brazil.
On tuesday May arabica futures up by 2.3 cents, or 1.5 percent, at $1.5185 per lb, which is the highest price point since Feb. 2.
As reported by US based meteorology department, Rains in Sao Paulo last weekend maintained adequate moisture for arabica cherry growth, but dryness is so severe in Robusta growing regions like Espírito Santo, also same dryness is previals across the rest of the coffee belt for another one week.Department forecasted coffee belt may recieve rains in the next 6-to-10-days.
COFFEE – Robusta
Robusta futures had a lackluster session, adding just 0.1% to reach $2,189 per tonnes.
Overall Futures were firm in both New York and London on ideas of better demand.New York May moved through, but could not hold above resistance at 150.00.Demand seemed best for good qualities.
Also read Coffee futures update – 21/feb/17
Certified stocks are higher today and are about 1.328 million bags
Brazil remains a tale of two regions. Arabica areas have seen better precipitation and good production is expected, but Espírito Santo has been so dry that the government is moving to allow Robusta imports to cover domestic demand needs. There has been talk of demand for inferior qualities in the rest of Latin America as well that presumably would get sent to Brazil. The coming rains will benefit the next crop, but the drought stress will be a problem for producers for a couple of years.
Most other parts of the Coffee production world are suffering from mixed production conditions as is Brazil. This includes Asia and the rest of Latin America.
Also Read Indias arabica coffee exports stay flat
Source: Morning Softs by Jack Scoville.Insidefutures.com