Arabica steadies after touching more than 1-1/2 year lows

Arabica coffee futures on ICE steadied on Thursday after touching 1-1/2 year lows in the previous session as favourable crop weather in Brazil and rising exchange stocks pressured prices.

March arabica coffee was up 0.8% to $1.4505 per lb​ at 1318 GMT, after touching $1.4205 on Wednesday, the weakest since early May 2021.

Rains in Brazil have boosted the outlook for the arabica crop in the world’s top producer.

Weather forecaster Maxar said the rest of this week will feature more light to moderate rains that should support Brazil’s crop growth even further.

Elsewhere, ICE stocks are at a six-month high of 850,401 bags. There are also 170,024 bags pending grading.

Rabobank noted in a report this week that the world container shipping index is down over 75% year on year, making coffee exporting considerably cheaper.

March robusta coffee rose 1.2% to $1,833 a tonne, having fallen 1.6% on Tuesday.

Coffee prices in top robusta producer Vietnam were sluggish this week as farmers held back from selling due to unattractive offered prices and weak demand.