Coffee Prices Under Pressure From Global Demand Concerns

Coffee prices this morning extended Monday's losses down to 1-week lows.  Global demand concerns are weighing on coffee prices with the war in Ukraine and pandemic lockdowns in China.  Also, Starbucks on Monday said that it would leave Russia completely, citing  Russia's "horrific" attacks on Ukraine.

July arabica coffee fell 2.1 cents, or 1.0%, to $2.1365 per lb​​​, having hit its lowest since mid-May at $2.11​.

July robusta coffee rose $2, or 0.1%, at $2,043 a tonne.

Another bearish factor for coffee prices was last Friday's projection from Rabobank for the global 2022/23 coffee market to revert to a surplus of 1.7 mln bags compared with a deficit of -5.1 mln bags in 2022/22.  Rabobank expects Brazil 2022/23 coffee production to climb +14% y/y to 64.5 million bags.  Also, the war in Ukraine and China's Covid lockdowns are expected to temper global coffee demand.