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US Coffee C Futures - Dec 24 (KCZ4)

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Arabica trees in Brazil were starting to show stress due to the lack of rain over the last few months. It has been a dry Winter, but a few light showers have been reported in the last couple of days. It will turn dry again for the rest of the week. The months leading up to the Winter were also dry, and that early dryness is affecting trees now. It is very possible that some production could be lost, especially for next year. Estimates for production this year range as high as 60 million bags. London remains relatively strong as Vietnamese production is not moving. There is not much Robusta on offer in the world markets right now even though supplies in storage in Europe are very high.
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