Arabica coffee prices on ICE hit a fresh 13-month low on Friday, heading for a second straight weekly loss amid an upbeat supply outlook and ongoing concerns about surging inflation and a weakening global economy.
* December arabica coffee rose 0.1% to $1.9120 per lb at 1531 GMT, having touched its lowest since September 2021 at $1.8620.
* “Coffee futures have shaken off concerns as to tight global inventories and instead seen prices fall on an improving weather outlook in Brazil and a deteriorating consumption environment,” said Fitch Solutions in a note.
* Brazil’s 2022/23 coffee crop was projected at 57.3 million 60-kg bags compared to a September estimate of 58.2 million bags, consultancy Safras & Mercado said.
* Dealers noted sales in top producer Brazil have almost completely stalled, with farmers reluctant to clinch deals at low prices.
* January robusta coffee fell 2.2% to $1,996 a tonne.
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Source: Reuters 2022
