Overproduction is also a problem, with Arabica coffee plummeting to a 13-year low!

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A few days ago, Jack Scoville, a senior market analyst at Price Futures Group, said there may still be room for prices to fall further, "but then they should start to pick up." New York / London (Reuters)-ICE Arabica coffee futures tumbled on Tuesday, dragging down monthly contracts to their lowest level in more than 13 years, dragged down by a global glut.

Arabica coffee futures contract 1905 closed down 1.2 cents, or 1.2%, at 96 cents per pound. At one point, Arabica coffee futures fell 2.6% to 94.65 cents, the lowest for the second month since December 2005.

Traders are focused on support at recent lows in recent months, with a low of 93.55 cents hit in February and a low of 92 cents hit in September last year, Reuters said.

The futures contract for another large variety, Robusta coffee, 1905 closed down $7, or 0.5%, at $1525 a tonne.

The decline in coffee prices is mainly due to fundamental pressures: the global supply glut has hit prices hard, particularly from Brazil, the largest coffee grower.

The decline in coffee prices is mainly due to fundamental pressures: the global supply glut has hit prices hard, particularly from Brazil, the largest coffee grower.

During the 2018 / 2019 planting season, under the influence of good weather and improved coffee growing technology, Brazilian coffee bean production reached an astonishing all-time high of 63.05 million bags (60 kg each) and exports reached a record 39.8 million bags.

As a result, Arabica coffee futures are one of the worst performing commodities this year, down about 20 per cent over the past 12 months. To be exact, speculators have maintained a clear short position of the breed for as long as 18 months.

As for 2019, although the Brazilian coffee harvest season does not begin until April, agencies have made forecasts for Brazilian coffee production this year. Under the influence of small production years and the recent dry climate and lack of rain, major institutions are not optimistic about Brazilian coffee production in 2019, most of them think it is around 55 million bags.

Photo Source: Internet

Source: Reuters