Arabica coffee futures on ICE were higher on Friday but were still set for a weekly loss, weighed down partly by rising exchange stocks, while raw sugar prices edged higher.
* March arabica coffee rose 0.7% to $1.5980 per lb by 1452 GMT although the contract was on track for a weekly loss of about 1.8%.
* Dealers said the market was back on the defensive after a short-lived rally linked partly to a deteriorating outlook for next year’s crop in Brazil.
* “After temporarily rebounding due to a worsening supply outlook in top producer Brazil and Colombia, arabica coffee prices have begun to ease, triggered by a sharp rebound in ICE arabica coffee inventories,” Fitch Solutions said in a note.
* ICE certified coffee stocks stood at 668,581 bags on Dec. 8, well above a 23-year low of 382,695 bags set on Nov. 3. There were 395,432 bags pending grading.
* January robusta coffee fell 0.2% to $1,914 a tonne.
* The global coffee supply balance will shift from a deficit of 2.17 million bags in 2022/23 (April-March) to a surplus of 3.74 million bags in 2023/24 as Brazil’s output partly recovers, according to a report by consultancy HedgePoint.
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Source: Reuters
