Coffee prices on ICE slide on plentiful global supplies, especially from top grower Brazil despite a firmer currency in top grower Brazil .
May arabica coffee settled down 1.3 cent, or 1.3 percent, at 97.20 cents per lb after trading within the previous session’s range.
Prices remain pressured by plentiful global supplies, especially from top grower Brazil.
Futures fell despite a stronger currency in Brazil. The two have frequently moved in tandem of late, as a stronger currency can discourage producer selling of dollar-denominated commodities like coffee.
Speculators raised their net short position in ICE arabica coffee to the largest since mid-October in the week to March 5.
“Speculative sentiment remains at low but not extreme levels, meaning prices have the potential to head even lower (over the coming weeks),” ratings agency Fitch said.
Americans are consuming more gourmet coffee than ever, but the outlook for future growth may be threatened by increasing economic worries.
May robusta coffee settled up $2, or 0.1 percent, at $1,532 per tonne.
Copyright Reuters, 2019