Arabica coffee prices fall on Brazil rains, rising stocks
Arabica coffee futures on ICE fell on Wednesday, with rains in Brazil boosting the outlook for crops and rising exchange stocks also weighing on prices.
May arabica coffee settled down 5.25 cents, or 2.8%, at $1.828 per lb.
The drop is linked to Brazil’s increased coffe exports, which Cecafé reported rose 45% in January to 3.7 million bags.
As the top Arabica bean producer, Brazil’s weather initially boosted prices. Yet, the prospect of more coffee led to lower prices.
Robusta coffee stocks hit a new low, emphasizing the dwindling supply. Meanwhile, Arabica stocks fell to a 24-year low before partially recovering to a three-month peak last Friday.
