Exchange-registered coffee stocks fell to lowest level

The Arabica coffee price gained by 1.8% yesterday and closed at 128.5 US cents per pound. Robusta was also able to profit from this price surge and closed trading just shy of 1% higher at $1,582 per ton. According to data published on Tuesday by the ICE, exchange-traded coffee stocks have fallen to their lowest level since August 2012. Therefore, it remains to be seen how the weather will develop in Brazil, the largest producer of Arabica coffee. 

If the beneficial rainfall of early September continues and helps the plants to blossom, this could result in a growing supply of Arabica coffee in the coming crop year. The Robusta coffee price could come under pressure if the crop in Vietnam - the largest producer country - proves to be as plentiful as many market participants anticipate. 

According to the Brazilian coffee export council CeCafe, Robusta exports from Brazil also soared by 51% year-on-year to 3.4 million bags in the period January to September, constituting the highest increase since 1990, notes Commerzbank.