Arabica Coffee Eases Near Two-Year High as Roasters Flag Prices

Arabica coffee futures have cooled after a rally that reached a two-year high, causing supply concerns to rise. The most-active contract fell by up to 3% to US$2.424 a pound in New York, after rising to the highest since early 2022. The contract was in overbought territory, indicating that prices may have risen too quickly. Futures for higher-end arabica are up about 30% this year due to shortages of the cheaper robusta variety. Production in major robusta growers Vietnam and Indonesia has dropped, leaving roasters scrambling for beans. Robusta futures reached their highest in data since 2008, indicating that arabica must stay high. Concerns over a weaker-than-expected harvest in Brazil are also emerging, adding to the global supply strain. Arabica coffee could face volatility with the start of winter in the South American nation.

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