Tridge summary
ICE coffee futures experienced a decline on Monday following a surge to 47-year highs, with Arabica coffee dropping about 6% to dip below $3 a pound and Robusta coffee futures decreasing by 8% to fall below $5,000 a metric tonne. This sell-off was attributed to technical trading signals suggesting an overbought market and concerns over Brazil's currency impacting coffee sales. Despite the drop, worries persist regarding the potential impact of severe drought on Brazil's arabica crops in 2025, and the rise in coffee prices this year has made it one of the best-performing commodities, alongside cocoa, which has more than doubled.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
LONDON (Reuters) - ICE coffee futures fell on Monday after hitting 47-year highs in the previous session as technical trading signals suggested the market was overbought. A weak currency in top producer Brazil also sparked selling. COFFEE * Arabica coffee was down about 6% by 1230 GMT to below $3 a pound, after hitting its highest since 1977 at $3.3545 on Friday. * Robusta coffee futures fell 8% to below $5,000 a metric tonne, having peaked at $5,694 a tonne on Friday, also the highest since 1977, according to the International Coffee Organization (ICO) price index. * Traders said the market was technically overbought “on the tight supply theme,” but added that concerns remained over whether Brazil’s arabica crops would have enough power to produce a strong crop in 2025 after this year’s severe drought. * At the same time, a weakening Brazilian real is weighing on coffee, encouraging exporters in ...
Source: NoticiasAgricolas
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