Good morning, you're listening to Markets Desk.
Arabica coffee futures exploded higher Monday, closing up more than sixteen percent to reach a five-and-a-half-month high, with robusta not far behind at nearly nine percent. The catalyst was a delayed harvest in Brazil, where weather disruptions are raising real supply concerns heading into the back half of the year.
Staying in the soft commodities space, sugar prices also pushed higher, with New York world sugar closing up nearly two-and-a-half percent. The move was tied in part to Brazilian real volatility — a weaker real typically makes Brazilian exports cheaper and more competitive, pressuring global prices, but Monday's late-session real rally added a layer of support.
On the macro side, the dollar index edged up roughly a fifth of a percent after the June ISM services index came in as expected, reinforcing the view that the US services economy remains on solid footing. The yen continued to drift lower as Japanese authorities held back from intervention, giving dollar bulls room to run against the currency.
That's the tape. Markets Desk, signing off the floor.
