September ‘10 ICE NY Arabica coffee prices rallied to a high of US¢147.55/pound today, a gain of 8.57% in just two days. Prices have since come off their highs as the rally encouraged producer selling, but the recent gains have come as surprise to many given the near-term fundamental outlook. With a large upcoming Brazilian coffee harvest, near term fundamental developments indicated that ICE NY coffee prices ‘should’ decline as Brazilian new crop supplies begin to flow onto the market. But a strengthening Washed Arabica cash market, cold weather scares in Brazil, a buoyant Robusta market and a tightening market structure have helped nearby ICE NY coffee prices reach their highest level since December ‘09.
Rabobank: Agri Commodity Markets Research - Coffee – Roasting Hot!
