MILAN – Coffee futures prices eased on Tuesday on better weather in Brazil and improved supplies. The Arabica contract for September delivery closed 615 down at 219.35 cents per lb. September ICE Robusta coffee prices closed $32 down at 2,224 snapping a six-session streak of gains.
The amount of green coffee stored at ports in the United States rose by 173,201 60-kg bags at the end of July, up 2.9% month-on-month and 2.5% year-on-year, reaching a 1-3/4 year high of 6.223 million bags, data from the Green Coffee Association (GCA) showed.
Ice Arabica certified stocks are still at historic lows, but the situation is set to improve since there are 270,000 bags that are pending grading.
Heavy rain last week eased drought concerns in Brazil. Data from Somar Meteorologia on Monday showed that Minas Gerais received 17.8 mm of rain in the past week, or 659% of the historical average.
Minas Gerais accounts for about 30% of Brazil’s arabica crop.
Fitch Solutions said it expects arabica prices to be close to $2 per lb for the rest of 2022, under pressure from slowing global growth, which should weaken demand, and from an expected 4.1% increase in global production in the 2022/23 season.
According to market sources, the latest Commitment of Traders report from the New York Arabica coffee market has seen the Managed Money fund sector increase their net long position within this market by 16.13% over the week of trade leading up to Tuesday 9th August, reaching a new net long position at 21,272 lots.
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