Arabica coffee futures on ICE fell on Thursday, reversing the previous session’s bounce off three-month lows, as the market’s focus returned to the issue of excess supply.
* December arabica coffee was down 0.45 cent, or 0.5%, at 96.20 cents per lb at 1123 GMT.
* The benchmark second position dipped to a three-month low of 93.40 cents on Tuesday.
* A stronger Brazilian real, which discourages producer selling, and expectations of a smaller Brazilian coffee crop next year had supported prices on Tuesday, but gains have proved short-lived.
* “Roasters are happy to wait for lower prices (before they) start buying, (while) every time there’s a (price) bounce its seen by origin as an opportunity to sell,” said a dealer.
* November robusta coffee was up $6, or 0.45%, at $1,330 a tonne.
* Coffee prices in top robusta producer Vietnam were unchanged this week amid few trades and dwindling end-of-season stockpiles, while Indonesian prices fell as more supply came on stream despite the harvest-end looming.