Arabica Coffee Futures Plunge 6% on Friday

On Friday, May 16, 2014, coffee futures traders around the world watched prices nosedive. After a strong gain the day before, prices for both arabica and robusta coffee saw sharp reversals — driven not by supply shocks or climate fears, but by profit-taking in highly volatile markets. For those tracking specialty coffee costs or just curious how global pricing works, this was a textbook example of market momentum shifting fast.

Arabica coffee futures dropped 6% in a single day — their largest percentage fall since August 2010. That’s a concrete number: ICE’s July contract lost 11.75 cents, closing at $1.8505 per pound.

Why Did Arabica Futures Crash 6%?

The steep decline came after a major rally on Thursday, when Brazil’s official coffee agency cut its national production forecast. That news sent arabica futures soaring. But on Friday, traders who bought the previous day locked in profits, triggering a sharp sell-off. The retreat erased much of Thursday’s gains in one session.

What Happened with Robusta Coffee?

While arabica stole the spotlight, robusta also had a rough Friday. Liffe’s July robusta contract dropped 92 dollars — a 4.3% decline — closing at $2,046 per metric ton. That brought prices to their lowest level since April 3. Contributing to the fall: certified robusta stocks more than doubled in just two weeks, hitting 3,354 tonnes as of May 12.

Other Key Commodities That Moved

The coffee market wasn’t alone in seeing big moves and reversals:

• ICE July raw sugar futures fell 0.29 cents (1.6%) to $17.91 per pound, though they still posted a weekly gain of 4.1% — their best since late March.
• Liffe August white sugar futures dropped 4.9 dollars (1%) to $488.50 per ton.
• Liffe July cocoa futures rose 5 pounds (0.3%) to $1,825 per ton, while ICE July cocoa added 10 dollars (0.3%) to $2,917 per ton. Both contracts enjoyed solid weekly gains: 2.2% for ICE cocoa, marking its best week since late January.

Key Numbers at a Glance

• ICE July arabica: Down 11.75 cents (-6%) to $1.8505/lb
• Liffe July robusta: Down 92 USD (-4.3%) to $2,046/ton
• ICE July raw sugar: Down 0.29 cents (-1.6%) to $17.91/lb (up 4.1% for the week)
• Liffe August white sugar: Down 4.9 USD (-1%) to $488.50/ton
• Liffe July cocoa: Up 5 GBP (+0.3%) to $1,825/ton
• ICE July cocoa: Up 10 USD (+0.3%) to $2,917/ton (up 2.2% for the week)
• Certified robusta stocks (May 12): 3,354 tonnes (more than double two weeks prior)

Frequently Asked Questions

Why did arabica coffee futures fall 6% on May 16, 2014?

Arabica coffee futures dropped 6% because traders took profits following a sharp rally on Thursday, when Brazil’s coffee agency lowered its production estimate. The ICE July contract lost 11.75 cents, closing at $1.8505 per pound — the biggest one-day percentage fall since August 2010.

What caused the drop in robusta coffee prices?

Liffe July robusta futures fell 4.3% (92 USD) to $2,046 per ton due to profit-taking and a surge in certified robusta stocks, which more than doubled to 3,354 tonnes in just two weeks, reaching their highest level since early May.

Did other commodity markets also see price changes that day?

Yes. ICE July raw sugar fell 1.6% but gained 4.1% for the week. Liffe August white sugar dropped 1%. Meanwhile, both Liffe and ICE July cocoa futures rose slightly, with ICE cocoa posting a 2.2% weekly gain — its strongest since January.

How much did ICE July arabica coffee futures close at?

ICE July arabica coffee futures closed at $1.8505 per pound after falling 11.75 cents (6%) on May 16, 2014.

What was the change in certified robusta coffee stocks as of May 12, 2014?

Certified robusta coffee stocks increased to 3,354 tonnes as of May 12, more than double the amount from two weeks earlier.