LONDON: Arabica coffee futures on ICE turned higher on Wednesday, rebounding off a six-week low.
September arabica coffee was up 0.50 cents, or 0.5%, at $1.00 per lb at 1330 GMT after falling to a low of 98.40 cents, the weakest level for the contract since June 19.
Dealers said they were continuing to keep a close watch on forecasts for Brazil coffee areas with the potential for frosts to damage crops at this time of year.
They noted temperatures were expected to drop in some areas over the coming weekend but there did not appear to be a major threat to crops.
A frost scare in early July sent arabica prices to 2019 highs but gains were not sustained as crop damage appeared minimal, dealers said.
Dealers said supplies remained ample but low prices may be beginning to curb washed arabica production while 2019/20 was an off-year in Brazil’s biennial crop cycle.
September robusta coffee was down $11, or 0.8%, at $1,343 a tonne.