Arabica Coffee Prices Hit Seven-Month Low – CoffeeTalk

Arabica coffee prices have fallen to their lowest in seven months due to the return of dry weather in Brazil, which accelerates harvesting. The most-active contract fell by 1.8% to $2.868 a pound, the lowest since November. Dry conditions are expected over the next five days, which should further boost the harvest. The recent price decline suggests a significant weather risk premium eroding out of the market, which could still be put back on if forecasts trend colder. Futures are down more than 31% from their February highs, driven by a better production outlook in top grower Brazil. Global demand is expected to drop by 0.5% this year as higher retail prices persist despite the recent drop in green coffee prices.

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