CoffeeFeatured News

Coffee Prices Fall On Dollar Strength

Coffee prices fell Thursday as a stronger dollar sparked long liquidation in coffee futures.  

Coffee prices Wednesday rallied sharply on an increased risk of frost in Brazil, the world's biggest coffee exporter.  NOAA said Wednesday that temperatures in southern Brazil, an area that includes many of the country's coffee-growing regions, might be hit by frost by May 16 and that temperatures could remain well below normal through May 19. 

On Tuesday, arabica fell to a 6-month low, and robusta dropped to a 2-month low as dry conditions eased in Brazil.

Frosts last year drove coffee prices to their highest level since 2011.

Most forecasters, however, do not expect damage to coffee trees from this first cold wave of the winter in Brazil. Traders expect a large crop in the country in 2023 and see risks from its dominance in production.

July robusta coffee lost $20, or 1.0%, at $2,058 a tonne.

Indonesia, a key robusta producer, exported 6,771 tonnes of robusta coffee beans in April from Lampung province, data showed, down 52% from a year earlier.

Robusta coffee last Thursday rallied to a 5-week high on concern about smaller coffee supplies from Vietnam.  The Vietnam Coffee and Cocoa Association warned last Wednesday that the high fertilizer prices might force coffee farmers to reduce their fertilizer usage, which could lead to a 10% drop in coffee production next season.  Vietnam is the world's largest producer of robusta coffee beans.

Also read  Coffee Prices (Sakleshpur) on 10-03-2020