Arabica coffee on ICE Futures U.S. reversed course after reaching its highest price since mid-October as a short-covering rally dried up.
March arabica coffee settled down 1.23 percent, at $1.286 per lb,ending a five-day rally. Prices turned lower after climbing to $1.3135.
The recent price run-up was driven by fund short-covering against the backdrop of lower exports from Brazil and the potential for the next crop in the world’s top producer to be smaller than previously expected.
March robusta coffee settled up 0.12 percent, at $1,735 per tonne.
Copyright Reuters, 2017