Arabica coffee futures on ICE climbed on Tuesday, regaining some ground following steep losses in the previous session as dealers were still evaluating the impact of last weekend’s frost in top-grower Brazil.
September arabica coffee settled up 1.05 cent, or 1pc, at $1.0745 per lb after shedding more than 4pc in the previous session .
The market was still processing last weekend’s crop-damaging frost in Brazil, with some traders seeing the impact as minimal, while others were still uncertain about its impact and awaiting more information from growers.
Brazil’s Cooxupe, the world’s largest coffee cooperative, said it would release a report on Wednesday with its initial evaluation of frosts reported in coffee regions over the weekend.
The market had touched a seven-month peak of $1.1565 on Friday in anticipation of the frost.
Still, market fundamentals remained bearish, dealers said, with global consumption rising but not fast enough to absorb increased production in recent years, particularly in Brazil.
“The rise (in consumption) is still only small and the ample availability of coffee in the coming months is likely to keep bearish sentiment alive for the time being,” said Stefan Uhlenbrock, senior commodity analyst at IHS Markit’s Agribusiness Intelligence.
September robusta coffee settled up $10, or 0.7pc, at $1,436 per tonne.
Copyright Reuters, 2019