**Coffee Prices Mix As Dollar Index Rises**
On Thursday, July arabica coffee (KCN26) closed at -2.75 (-0.99%), while July ICE robusta coffee (RMN26) closed up +5 (+0.14%). The mixed settlement followed early gains, driven by a rally in the dollar index reaching a 13-month high, which prompted long liquidation in coffee futures. Despite recent price increases due to concerns about persistent rain in Brazil delaying the coffee harvest, weather forecasts turned positive, indicating mainly dry conditions ahead.
ICE arabica coffee inventories dropped to a 2.25-year low of 394,267 bags, while robusta inventories slightly increased to a 2.25-month high of 4,032 lots. The U.S. National Oceanic and Atmospheric Administration (NOAA) predicts a 67% chance of a “Super El Niño” this year, potentially affecting global coffee production. Meanwhile, Vietnam’s coffee exports have surged, with a 7.9% year-on-year increase reported for the January-May period, further influencing robusta prices.
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