Arabica Coffee Price on ICE Futures Hit Three Years High
On International Commodity Exchange (ICE) in New York, futures for Arabica break the highest point in price for the first time in three years and eight months on Monday, April 26 overseeingshort supply forecasted from Brazil and a higher Brazilian reais against the dollar.
On April 12, the world’s largest coffee co-op from Brazil announced dramatic production fall by almost a third to 7.49 million 60kg bags in 2021. The 32% fall in supply, down from 10.99 million bags in 2020, comes as top global producer brazil enters the off-year in the biennial coffee production cycle.
* July arabica coffee settled up 4.9 cents, or 3.6%, at $1.4175 per lb, after peaking at $1.4415, the highest for the benchmark second month since August 2017.
* Dealers said Brazil was set to harvest a smaller crop this year while demand was expected to revive in the United States and Europe as COVID-19 restrictions are gradually eased and coffee shops reopen for normal business.
* A stronger Brazilian currency, trading at a two-month peak against the dollar, was also seen by dealers as supporting the market as it deters producer selling.
Recently Augusto Rodrigues de Melo, Copxupe’s president, said the unfavorable weather resulted in a slower development, so he expects the start of the harvest to come a little later than normal, at the end of May or early June.