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Arabica coffee drops to 7-week low on ample rains in Brazil

Arabica-coffee futures slid to the cheapest seven weeks on signs of improving supplies. Arabica coffee fell to a 1-1/2-month low on Monday in the year’s first trading session amid fears of an impact to demand from Omicron cases and ample rains in Brazil.

Fears about potential impacts to coffee demand from increasing worldwide Omicron variant cases continued to hurt the market, dealers said.

They also cited ample rains over coffee fields in top producer Brazil, although some analysts are starting to fear negative impacts from excess moisture.

Brazil exported 207,640 tonnes of green coffee in December versus 254,552 tonnes a year ago.

Coffee prices soared last year as drought cut output in Brazil, and devastating frosts also cut the yield outlook for this season and probably next.

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