Arabica coffee fall back from 3-1/2 month high

Arabica coffee futures on ICE fell back from an earlier 3-1/2 month high on Wednesday.

A weak real can encourage Brazilian producer selling by raising the value of dollar-priced commodities such as coffee and sugar in local currency terms.

December arabica coffee was down 0.1 cents, or 0.1%, at $1.0560 per lb at 1449 GMT after peaking at $1.0710, the highest level for the contract since July 24.

Dealers said concerns about dry weather in Brazil had persisted despite some recent showers.

Also read  Waive interest on coffee growers loans-KGF

“Even though we had decent rainfall in Brazil this weekend, the amounts are still not high enough to eliminate the hydric deficit. More rainfall is needed,” Rabobank said in a market note.

January robusta coffee was unchanged at $1,339 a tonne after rising to a peak of $1,358, the highest level for the contract since Sept. 17.

The harvest in top robusta producer Vietnam is underway but may be delayed by forecast rains.

“Rainfall is still expected in robusta areas in Vietnam this week, which would delay the harvest. In principle we expect the rain to go away in a timely manner to avoid significant quality problems,” Rabobank said.

Also read  Coffee Prices (Karnataka) on 12-02-2019