Liffe November Robusta Coffee Falls $50 per Ton

The London coffee market saw sharp moves on Wednesday, with Robusta and Arabica contracts both posting notable declines amid shifting technicals and weather-driven sentiment shifts in Brazil—the world’s top coffee producer.

Liffe’s November Robusta coffee futures closed down $50 per tonne, or 2.4%, at $2,062 per tonne after technical weakness triggered late-session selling. That move followed rain in Brazil’s coffee regions, easing concerns over dryness-related crop damage.

What Drove the Robusta Price Drop?

Liffe’s November Robusta contract fell $50, or 2.4%, to settle at $2,062 per tonne. The decline was attributed to technical factors that led to a wave of selling near the close. At the same time, rainfall in Brazil’s key coffee-growing areas helped relieve worries that ongoing drought might harm the crop—supporting bearish momentum.

Arabica Futures Also Declined

The benchmark ICE December Arabica coffee futures contract dropped 7.15 cents (3.4%) to $2.023 per pound. The contract had earlier approached a one-month high of $2.0995 but failed to break through, encountering technical resistance. That triggered a broader sell-off, with prices falling as much as 8.4 cents by the close. Trading volume also increased during the decline.

Earlier in the session, the contract had hovered near its strongest level in a month, but the failure to push higher led to a reversal. The inability to breach resistance attracted selling pressure that extended into the close.

Other Soft Commodities Move

Outside coffee, ICE October raw sugar futures fell 0.20 cent (1.3%) to $15.62 per pound, pressured by ample short-term supplies. Meanwhile, Liffe October white sugar futures dropped $3.20 (0.7%) to $425.60 per tonne. In contrast, Liffe December cocoa futures bucked the trend, rising £2 (0.1%) to £1,992 per tonne on expectations of continued investor interest despite broader market softness.

Rainfall throughout Brazil’s coffee regions weighed on coffee futures throughout the trading day. The precipitation alleviated dryness concerns that had previously supported firmer pricing, shifting sentiment firmly downward.

Key Figures from the Session

• Liffe November Robusta: Down $50 (2.4%) to $2,062 per tonne
• ICE December Arabica: Down 7.15 cents (3.4%) to $2.023 per pound
• ICE October Raw Sugar: Down 0.20 cent (1.3%) to $15.62 per pound
• Liffe October White Sugar: Down $3.20 (0.7%) to $425.60 per tonne
• Liffe December Cocoa: Up £2 (0.1%) to £1,992 per tonne

Frequently Asked Questions

Why did Liffe November Robusta coffee futures fall on September 4?

Liffe November Robusta futures dropped $50 per tonne (2.4%) to $2,062 per tonne due to technical selling and rainfall in Brazil easing drought-related crop concerns.

How much did ICE December Arabica coffee futures decline?

ICE December Arabica futures fell 7.15 cents (3.4%) to $2.023 per pound after failing to break through a one-month high of $2.0995, triggering technical resistance and a sell-off.

What was the impact of Brazilian rainfall on coffee futures?

Rain in Brazil’s coffee-growing regions relieved worries about drought-damaged crops, contributing to bearish sentiment and helping drive down both Robusta and Arabica prices.

Which other commodities were affected on the same day?

ICE October raw sugar fell 1.3% to $15.62 per pound, Liffe October white sugar dropped 0.7% to $425.60 per tonne, while Liffe December cocoa futures rose 0.1% to £1,992 per tonne.

What technical issue affected the Arabica market?

The December Arabica contract faced selling pressure after it failed to break above $2.0995, its highest level in a month, leading to a broader price decline.