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Arabica coffee sets 2-1/2 month peak

Arabica coffee futures climbed to a 2-1/2 month peak on Thursday boosted partly by crop concerns in top producer Brazi.

  • December arabica coffee KCc2 rose 0.6% to $2.4035 per lb by 1424 GMT after climbing to a 2-1/2 month peak of $2.4075.
  • Dealers said dry weather in Brazil coffee areas remained a concern, threatening the development of coffee buds and cherries after heavy rains earlier this month led to some early flowering in some areas.
  • They noted that ICE certified stocks were climbing as traders re-certify thousands of bags in a move which can remove age discounts.
  • ICE certified arabica stocks on Aug. 24 stood at 663,780 bags, a seventh successive daily increase after setting a 23-year low of 571,580 bags on Aug. 15.
  • November robusta coffee LRCc2 fell 0.9% to $2,326 a tonne after setting a 7-1/2 month high of $2,355 on Wednesday.
  • Dealers said the recent run-up had been fuelled both by adverse weather in top robusta producer Vietnam and strong domestic demand in Brazil.
  • “There is some concern in the market that Vietnam’s 2022/23 production prospects have weakened somewhat. Concerns have been heightened by limited rainfall in some robusta-growing regions in recent weeks,” Rabobank said in a report.
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