LONDON: Arabica coffee futures on ICE fell to a fresh 13-year low as the market struggled to absorb excess supplies.
July arabica coffee was down 1.5 cents, or 1.6 percent, at 91.45 cents per lb after dipping to a low of 91.30 cents, the weakest for the second month in more than 13 years.
Dealers said the market remained on the defensive with supplies plentiful and the arabica harvest in top producer Brazil set to start gathering pace next month while price charts were also seen as bearish.
“The (technical) indicators suggest we could see lower prices in the near-term,” Sucden Financial technical analyst Geordie Wilkes said in a market note, adding the break below July’s previous low of 91.75 cents brought 90 cents “into play.”
July robusta coffee fell $9, or 0.6 percent, to $1,422 a tonne.