Coffee rallies despite big consumer stocks - Coffee prices rose despite Green Coffee Association data released late on Monday, which showed US green coffee stocks in March at highest level since at least 2001.
"It is so far, the evidence of these North American stocks that accompany similar reports of relatively high levels of stock being held within Europe and Japan, that continues to side-line the many forecasts of deficit global coffee supply for the coming year," said South African trade house I&M Smith.
But I&M Smith suggested that the forecast tightening producer bloc coffee supply is "related to the assumption of perfect weather conditions, which is often an unlikely scenario and does leave the markets open to a potentially sharp speculative reaction to any unforeseen weather issues developing for any of the main producer blocs over the coming months".
July arabica coffee settled up 1.4%, at 145.55 cents a pound, the highest for the second-month contract since March 22.
May robusta futures settled up 0.8%, at $2,190 a tonne.
Tuesday, April 18, 2017
coffee prices
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