The coffee market is looking increasingly bleak.
While robusta futures rose on Tuesday, the gain followed the biggest daily slump in four months that sent prices to the lowest since 2010. The beans, favored for instant drinks, have been pressured by a glut of coffee and money managers have never been so bearish.
As well as a global surplus, a weaker real has made coffee exports from key producer Brazil more attractive and flowering there is looking good. That’s helped put robusta and arabica on course for a third straight annual decline.