Arabica, robusta coffee dip to two-month lows

Arabica and robusta coffee futures on ICE dropped to two-month lows on expectations of plentiful global supplies.

* March arabica coffee settled down 0.9 cent, or 0.8 percent, at $1.069 per lb after setting a two-month low of $1.06.

* The next support level was at $1.05, dealers said.

* Prices have been pressured by expectations of plentiful supplies, especially from top producer Brazil. The country’s green exports in November were a record high 3.89 million bags,
official data showed on Monday.

* A weak Brazilian real, which can encourage producer selling, also weighed on prices, dealers said.

* Colombian coffee exports in November were up 7.9 percent year on year, data from a coffee growing association showed. The possibility of an El Niño pattern developing early 2019,however, could reduce the country’s rainfall and negatively affect its coffee production.

* March robusta coffee settled down $10, or 0.6 percent, at $1,556 per tonne after dipping to $1,580, its lowest since Oct. 3.

* The market was on the defensive as the harvest in top producer Vietnam gathers pace, dealers said.