Arabica coffee hits six-week low on stronger dollar

Arabica coffee futures on ICE fell to a six-week low on Thursday as a stronger dollar and bearish technical influences helped to put the market on the defensive.

September arabica coffee fell 1.45 cents, or 1.5%, to 98.20 cents per lb by 0956 GMT after slumping to a six-week low of 97.85 cents.

Dealers said the market was being driven on Thursday largely by broader macroeconomic influences and bearish price charts rather than coffee fundamentals.

The possibility that funds could rebuild a net short position remained a bearish factor.

“It is the beginning of the month and it wouldn’t surprise me if they (funds) added some more short positions,” one London dealer said.

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Fund short-covering has helped to fuel a rebound in prices during the past couple of months, but the run-up has stalled and the speculative net short had begun to rise again.

September robusta coffee was down $14, or 1.05%, at $1,324 a tonne, with light roaster buying helping to limit losses.

Indonesia’s July robusta coffee bean exports from the Sumatra province of Lampung fell 47% from a year earlier despite posting the best result this year, local trade office data showed on Thursday.

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