ICE Arabica Coffee Falls to Five-Month Low

Coffee traders woke up to yet another dip on the global futures board — not due to holiday cheer, but a persistent slide in ICE Arabica prices. The market has now dropped for three straight sessions, breaking below key technical levels and sparking renewed selling pressure just ahead of the Christmas break.

The March contract for ICE Arabica coffee closed at $1.7015 per pound on Wednesday, down 0.85 cents or 0.5%, marking its lowest level since late July. The session low touched $1.6975, the weakest intraday price since July’s end, and a clear sign that bearish momentum has taken hold.

Why Did Arabica Coffee Futures Drop?

The downward trend started after the March contract broke below the 50% Fibonacci retracement level of its 2013 November low-to-peak rally. That technical breakdown triggered automated and manual selling that carried into Wednesday, the third consecutive losing session. Such technical selling often accelerates once key chart levels are breached, especially in thinly traded markets.

What Were the Key Price Moves on Wednesday?

Here’s how key contracts settled on December 25:

• March Arabica coffee: Down 0.85 cents to $1.7015 per lb, with an intraday low of $1.6975
• March Robusta coffee: Down $8 to $1,903 per metric ton
• March New York cocoa: Up $4 to $2,970 per ton (+0.13%)
• March London cocoa: Down £2 to £1,983 per ton (-0.1%)
• March raw sugar: Down 0.07 cents to 14.76 cents per lb (-0.5%)
• March white sugar: Up $1.30 to $392.00 per ton

The declines in coffee came alongside broad market softness, with many participants already winding down ahead of the Christmas holiday. Trading volumes were light, and both ICE US and European markets operated on reduced or holiday schedules.

What’s Behind the Broader Market Weakness?

Beyond coffee, other commodities showed mixed but muted moves. Raw sugar faced pressure from ample near-term supply and a weaker Brazilian real, while cocoa saw some early support from a stronger British pound vanish as UK markets closed early. With thin holiday trading, even small shifts had visible impacts on futures pricing.

When Will Markets Resume Normal Activity?

ICE futures in the U.S. will reopen for trading on Friday, but European markets will remain closed until Monday. That leaves Thursday’s light-volume session as one of the last chances for traders to adjust positions before the break — contributing to the day’s sharp moves in coffee and other contracts.

Frequently Asked Questions

Why did ICE Arabica coffee fall to a five-month low?

ICE March Arabica coffee dropped to $1.6975 per lb, its lowest since late July, after breaking below a key 50% Fibonacci technical level. This triggered sustained selling over three consecutive sessions, with the December 25 close at $1.7015 reflecting a 0.5% loss for the day.

What is the 50% Fibonacci retracement level in coffee trading?

The 50% Fibonacci retracement level refers to a key technical chart point halfway between a major price high and low. For Arabica coffee, this level was based on the rally from the November 2013 low, and March futures falling below it led to automated and manual selling pressure.

How much did other coffee and commodity futures move on December 25?

March Robusta fell $8 to $1,903 per ton, March NY cocoa rose $4 to $2,970 per ton, March London cocoa fell £2 to £1,983 per ton, March raw sugar dropped 0.07 cents to 14.76 cents per lb, and March white sugar gained $1.30 to $392.00 per ton.

Why were trading volumes light on December 25?

Markets were operating on holiday schedules with many participants already closed or reducing activity ahead of Christmas. Both ICE US and European markets had limited hours or were shut, leading to thinner volumes and increased volatility on price moves.

When will global coffee futures markets return to full operation?

ICE futures in the United States will resume normal trading on Friday, December 27, but European markets will remain closed until Monday, January 1, extending the holiday lull in trading activity.

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