Coffee futures price fundamentals remain strong

Coffee futures price fundamentals remain strong, with inventory drawdowns at ICE warehouses down 7% month-over-month. Lower certified stocks historically correlate with sustained price strength through mid-year trading. “Those large companies are able to use hedging strategies, what’s called, buying future contracts well in advance to control their costs and many of them have probably have contracts that are a year or so out and so it might not be for another year or so that you might end up seeing significant increases once current stocks and futures start to settle,” says Reichman. Shell's US executive says Trump's halting of wind projects harms investment, FT reports Coffee futures price gains are partially fueled by speculative flows from funds reallocating out of metals into soft commodities. Volume spikes in New York further affirm this rotation trend in institutional strategy.