Arabica coffee hits two-week peak

Arabica coffee futures on ICE rose to a two-week high on Tuesday, just shy of a three-month peak, as some projections for production in the world’s largest exporter head downwards.

May arabica coffee KCc2settled up 6.5 cents, or 3.7%, at $1.8325 per lb.

Dealers noted that exchange stocks were beginning to fall, with the recent backlog of grading now cleared, while some estimates for production in Brazil indicate a lower than expected level.

 “The revisions have been trending lower rather than higher,” said Ryan Delany, chief analyst at Coffee Trading Academy.

Broker StoneX on Tuesday projected the new Brazil crop at 62.3 million bags, saying output will be smaller than initially expected.

Certified arabica stocks at the Intercontinental Exchange (ICE) fell to 870,079 60kg bags as of Feb. 14 after climbing to a 7-1/2 month high of 891,933 bags on Feb. 8.

May robusta coffee LRCc2 rose $26, or 1.3%, to $2,070 a tonne.