
Daily Coffee Report 8/11/26
Daily coffee report

- Coffee
By: Diana Delgado, Contractor

Arabica Futures Fall Amid Fund Selling and Weaker Brazilian Real
Arabica coffee futures on the Intercontinental Exchange (ICE) traded 4.70 cents lower for the July contract, last quoted at 269.30 cents/lb at the time of writing, pressured by a weaker Brazilian real and fund selling activity.
The July contract traded as high as 276.80 and as low as 269.30 during the session. A total of 8,370 July lots changed hands, while total volume across all contracts reached 20,641 lots.
“The July Arabica contract opened lower at the start of the session. Prices later rebounded but failed to sustain momentum above 275,” a coffee trader said.
The Brazilian real weakened to 5.0600 per U.S. dollar, although the currency remained within its recent five-day trading range.
Broader commodity markets were also softer amid optimism that tensions in the Middle East could ease, alongside continued enthusiasm surrounding the AI-driven technology sector. WTI crude oil traded near $89 per barrel, while Brent crude hovered around $95 per barrel. Grain and oilseed markets also followed crude prices lower overnight.
Analysts noted that delay tactics continue to provide Iran with strategic leverage, making a prolonged standoff more likely. Meanwhile, President Trump continues to face calls from supporters and several Gulf states to “finish the job,” though such action would likely require ground forces in Iran.
Although coffee is not directly shipped through the Strait of Hormuz, escalating tensions between the United States and Iran have already generated secondary shocks affecting global coffee logistics, freight pricing, and market risk premiums. Key transmission channels include energy costs, container availability, shipping insurance, chokepoint congestion, and broader shifts in carrier and trader behavior.
Approximately 20% of global oil and LNG flows normally transit through the Strait of Hormuz. Even intermittent disruptions have pushed crude prices sharply higher in recent weeks while increasing volatility in refined fuel markets. For container shipping, the impact is reflected most directly in bunker fuel costs, which account for roughly 30% to 50% of total voyage expenses on long-haul routes.
A potential de-escalation in the conflict could prompt carriers to adjust fuel surcharges and emergency bunker adjustment factors (BAFs) on Asia-Europe and Asia-U.S. East Coast routes. Coffee exports from Vietnam and Indonesia — both heavily dependent on containerized shipping and highly sensitive to fuel costs — have been particularly exposed, as elevated bunker prices disproportionately affect long east-west shipping lanes to Europe.
Latin American exports have also felt the impact, as rising global fuel benchmarks continue to feed directly into freight indices.
Meanwhile, July Robusta futures fell $44 per tonne to $3,475. The contract traded between $3,549 and $3,460 during the session.
By Diana Delgado
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Daily coffee report


August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.


Daily coffee report

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