July arabica coffee slipped 0.1% to $1.6090 per
lb, after setting a 4-1/2-year high of $1.6675 on Tuesday.
Rabobank mentioned on its monthly report on
commodity market that there are huge stocks in Brazil and Vietnam and bulky
(ICE exchange) certified stocks. However, funds are taking the market by storm
and, in moments of panic, the supply/demand has only a marginal impact on
pricing, assuming that fundamentals may become important only when the next
Arabica contract (July) approaches delivery and the reality of over 2 million
certified bags (of ICE exchange stock) might weigh on the market.
Investors are nervous and inclined to buy given
talk that the worst dry spell in 91 years in Brazil is hurting the development
of the upcoming 2022/23 crop, with dry weather having already hurt the current
July robusta coffee fell 0.4% to $1,585 a tonne,
after setting a 2-1/2-year high of $1,619 on Tuesday.
Indonesia’s Lampung province exported 5,575.50
tonnes of Sumatran robusta coffee beans in May, down nearly 41% year-on-year.