Arabica coffee futures ascended on Tuesday for the fourth-straight session, with the latest upside coming from technical buying after the commodity breached a key technical level.
Arabica coffee has attracted renewed buying interest as traders kept a close eye on soil moisture conditions in top grower Brazil. Showers over the weekend did little to calm concerns, with dryness still widespread across the country’s arabica growing region.
On Tuesday, arabica coffee futures added 1.5% to reach $1.5185 per lb., their highest price point since Feb. 2. More upside came as the May contract breached its 200-day moving average during the session.
Meanwhile, robusta futures had a lackluster session, adding just 0.1% to reach $2,189 per ton.
In Brazil, robusta farmers are bracing for coffee imports after deplicit in supplies of robusta beans,the country to allow imports. This is an unprecedented move for the major coffee producer and exporter. In fact, in 290 years of its coffee history,
Brazil imposes a tariff of 10% on coffee imports and is considering reducing this to 2% for the permitted imports.
The government approved the temporary imports of about 60,000 tons of green robusta beans from Vietnam last week.
On Monday, Brazil published rules for robusta imports.