(Bloomberg) — The coffee market needs a shot in the arm to break it out of a renewed slumber.
Robusta, favored for instant drinks, dropped to the lowest since 2010 on Thursday and is down 4.8% this week. Coffee prices have been weighed down for several years amid too much supply, while a weaker currency in key producer Brazil has recently added more pressure.
“We’re still suffering as a result of overproduction,” said Gary Herbert, a senior coffee broker at Sucden Financial Ltd. “There was the big Brazil crop a couple of years ago. This one isn’t so big, but also other countries like Colombia had big crops, Vietnam had reasonable crops.”