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Robusta coffee hits five-week peak

Robusta coffee futures on ICE rose to a five-week peak.

 July robusta coffee was little changed at $2,136, after earlier rising to a five-week peak of $2,159.

Dealers said supplies were tightening in top robusta producer Vietnam, though the robusta harvest in Brazil is beginning to pick up pace.

Brazil's green coffee exports fell to 165,744 tonnes in April from 207,170 tonnes a year before, said the government.

July arabica coffee fell 3.55 cents, or 1.6%, at $2.1725 per lb.

Robusta coffee on Thursday posted a 1-month high on concern about smaller coffee supplies from Vietnam.  The Vietnam Coffee and Cocoa Association warned Wednesday that high price of fertilizer 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.

A supportive factor for arabica Thursday was smaller coffee supplies from Colombia, the world's second-largest arabica producer.  The Colombian Coffee Growers' Federation reported that Colombian Apr coffee exports dropped -18% y/y to 845,000 bags.

Signs of smaller global coffee supplies are bullish for prices after the International Coffee Organization (ICO) reported Tuesday that global 2022 coffee exports during Oct-Mar fell -0.1% y/y to 66.25 mln bags.  

 

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