LONDON: Robusta coffee prices on ICE hit their lowest level in nine years on Tuesday as arabica coffee struck a 13-year low on oversupply concerns.
July robusta coffee fell $47, or 3.5 percent, to $1,298 a tonne by 1353 GMT, having touched its lowest since April 2010 at $1,282.
A dealer said the fundamentals meant it was inevitable that robusta, which had performed relatively well compared with arabica this year, would succumb to selling pressure.
Arabica has come under massive selling pressure this year from oversupply, especially in Brazil, the biggest and most efficient producer.
Also weighing on coffee was a weaker Brazilian real , which can encourage selling of dollar-denominated commodities such as coffee.
July arabica coffee lost 1.9 cents, or 2.1 percent, to 88.30 cents per lb after dropping to a 13-year low of 87.80 cents.
July arabica could fall towards 87.55 cents, having broken support at 90.45 cents, according to Reuters technicals analyst Wang Tao.
Speculators reduced their net short position in arabica coffee by 5,000 lots in the week to April 30, US data showed, while commercials lowered their net long position.
One dealer said the data showed commercial or physical industry players selling to speculators, offering a bearish signal.
Copyright Reuters, 2019