Coffee prices recovered from losses

Coffee prices Thursday recovered from early losses,with arabica coffee moving sharply higher.Coffee prices recovered on Thursday’s -1.9% plunge in the dollar index to a 2-month low. Reduced coffee exports from Brazil also supported coffee prices after Cecafe reported Brazil’s October green coffee exports fell -2.9% y/y to 3.18 mln bags.

December arabica coffee on Thursday closed up +5.85 (+3.54%), and Jan ICE Robusta coffee closed up +8 (+0.44%).

Coffee prices Thursday initially moved lower, with arabica and robusta falling to 15-month nearest-futures lows.

Rabobank Wednesday projected Brazil’s 2023/24 coffee crop would climb +8% y/y to 68.25 mln bags as recent rain is seen favoring the development of crops.

Rabobank also said a global coffee surplus could be seen in 2023/24 as consumption is expected to slow down from an economic recession and energy crisis.