Arabica Coffee Prices Consolidate From Low 16 Months

05/02/2018

REFINE FROM LONDON: Arabica coffee prices rebounded on Friday as speculators bought. This pushed the price up from the 16-month low along with raw sugar and cocoa as the US dollar weakened.

Arabica and Robusta prices have contracted closer since 2008, as early as May 2017, Robusta supply constraints pushed Robusta prices higher. A number of major industrialists are buying into demand as inventories in Brazil - the major producer of Conilon - are low.

According to a trader from London: "Technically, the market has entered the oversold zone from the Friday session last week when the technique hit the floor and has attracted buying participation, the price has rebounded slightly. The question is what is the market going up when the warnings for price reduction are still in place. "

Some brokers commented that the real estate market lacked the selling power of the producers, which is also the short-term support factor. However, roasters do not think this is a good opportunity to enter the market and they still maintain a very cautious position. They stand outside the market with enough coffee to deliver.

In addition, industrialists did not rush to enter the market when they had a number of contracts signed before. This shows that the market today is not interested in them - that is the problem that traders are aware of at the moment.

Tincaphe.com