Arabica coffee hits four-month low
Coffee prices Tuesday fell sharply, with arabica dropping to a new 4-month low. Arabica is under pressure on concern that Russia’s invasion of Ukraine will derail the global economy.
Arabica coffee futures slid to a four-month low on Tuesday.
May arabica coffee was down 3.15% at $2.1190 per lb at 1513 GMT after touching a four-month low of $2.1120.
Dealers said funds were continuing to liquidate long positions,with favourable crop weather in top producer Brazil adding to the bearish mood.
The outlook on prices charts also appeared bearish after the market’s weak recent performance.
A bearish factor for robusta is larger shipments from Vietnam after Vietnam’s General Statistics Office reported last Monday that Vietnam Jan-Feb coffee exports rose +3.4% y/y to 305,000 MT.
A bullish factor for coffee was Monday’s action by the International Coffee Organization (ICO) to cut its global 2020/21 supply estimate to a deficit of -3.13 mln bags from a previous estimate of a +1.2 mln bag surplus. The ICO lowered its global 2020/21 its global 2020/21 coffee production estimate to 167.17 mln bags from 168.88 mln bags and raised its 2020/21 global coffee consumption estimate to 170.30 mln bags from 167.68 mln bags.
