CoffeeFeatured News

Arabica coffee hits more than 10-year peak

Arabica coffee prices on ICE hit their highest in more than ten years on Wednesday, boosted by supply concerns,with exchange-certified stocks languishing at their lowest level in more than 20 years.

May arabica coffee settled up 9.05 cents, or 3.6%, at $2.5845 per lb, having hit its highest since September 2011 at $2.5965.

Dealers said they were continuing to monitor the draw down in exchange stocks. They added there was very little trade happening in top producer Brazil, with arabica roasters buying hand to mouth amid soaring prices.

Also read  Arabica coffee slowly slipping since soaring

Coffee prices this are rallying,with arabica at a 2-month high and robusta at a 3-1/2 week high.  Dwindling global coffee supplies are fueling fund buying of coffee futures today after ICE-monitored arabica coffee inventories fell to a 22-year low of 1.078 mln bags Monday.  Also, ICE-monitored robusta coffee inventories on Monday fell to a 3-1/4 year low of 9,212 lots.

Certified ICE arabica stocks fell to 20-year lows of 1.06 million bags on Tuesday, down sharply from 1.54 million bags seen at the end of 2021.

Marcos Matos, general director of Brazil’s coffee exporters association Cecafe, said the weather woes in Brazil last year and global logistic issues have impacted coffee traders capacity to replenish stocks at consuming countries, leading to higher prices.

May robusta coffee rose $25, or 1.1%, to $2,259 a tonne, drawing support from the rally in arabica.

Traders are planning to deliver thousands of tonnes of robusta coffee from Asia to the ICE exchange in Europe – a move likely to take the heat out of robusta prices.

Also read  Arabica coffee falls to 3-week low on Dollar strength