Arabica coffee at 2-month low on mounting demand worries

Arabica coffee fell more than 3% to its lowest level in two months as some funds liquidated long positions. Worries about demand in Russia, one of the world’s largest consumers, was also cited.

May arabica coffee fell 6.8 cents, or 2.9%, to $2.292 per lb. Earlier, it hit the lowest price since Jan. 4 at $2.272 per lb.

Dealers said the move on arabica appeared to be caused by speculators taking profits and exiting part of their large net long position amid uncertainties in the broader financial market brought on by the war in Eastern Europe.

Worries about demand in Russia, one of the world’s largest consumers, was also cited.

Coffee traders are seeking advance payments on any new order from Russia as Western sanctions hit the country’s financial system.

Honduran coffee exports increased 3.1% on a year-on-year basis in February to 661,580 60-kilo bags, but total shipments of the crop are expected to fall.

May robusta coffee fell $54, or 2.6%, to $2,030 a tonne, having earlier hit its lowest level in 5-1/2 months at $2,026.