On Tuesday,Arabica coffee futures on ICE fell to a one-year low triggered by chart-based selling.
While robusta coffee dropped below a two-month high, dropping below its 200-day moving average.
September arabica coffee settled down 2 cent, or 1.6 percent, at $1.246 per lb, after hitting $1.233, the lowest on a continuation chart since June 2016.[irp]
The market’s structure was partly boosted last week by concerns about tightening supplies later this year ahead of the next harvest in Vietnam.
“The market has done what it needed to do. It rallied and it found coffee, albeit in relatively small quantities,” one dealer said.
Robusta coffee supply situation will continue to be pressured for the next few months following a disappointing 2016/2017 crop around the world,a big drop in top producer Vietnam following a drought impacted robusta coffee yields.[irp]