MILAN – Arabica coffee futures soared to new all-time highs, but then retreated into negative territory under pressure from profit-taking and closed sharply lower. Yesterday, Tuesday 11 February 2025, the Ice Arabica front month reached a new intraday high of 437.95 cents, but then plunged to a low of 409.50 cents, to close at 413.45 cents, down 3.6%. May lost 16.70 cents ending the day at 404.40 cents.
Losses were smaller in London, where the May contract gave up $34, ending the day at $5,664. Supply fears, tight trade finance and weather problems and are underpinning prices.
Brazilian exports suffered a setback in January. According to data released yesterday by Cecafé, Brazilian exports of all forms of coffee fell by 1.6% on-year to 3,976,765 bags, still a very significant volume.
The decline was entirely due to green coffee exports, which also fell by 3.8% to 3,606,199 bags. Arabica exports were flat (-0.3%) at 3,278,125 bags. Robusta shipments fell by 28.9% to 328,074 bags.
On the other hand, foreign sales of processed coffee (mainly soluble) rose sharply (+25.7%) to 370,566 bags.
The Intercontinental Exchange (ICE) released a notice yesterday after the market close, to increase margin requirements for Arabica coffee futures and for cocoa futures.
Initial margin requirement for Arabica futures contracts expiring in March 2025 were raised from $ 8,806 to $ 9,829 per contract.
Initial Margin Requirement for the most active May 2025 contract were raised from $9,499 to $10,410 per contract.
