Arabica coffee heads to ICE warehouses, putting pressure on prices

LONDON/NEW YORK, Nov 4 (Reuters) – Traders with knowledge of the matter told Reuters that large volumes of arabica coffee are about to enter ICE exchange warehouses, further weighing on global prices that have already reached one-year lows.

The action to replenish ICE stocks eliminates one of the market’s last supports and may eventually provide consumers with relief from high retail coffee prices, which are always lagging behind movements on global commodity exchanges.

In recent weeks, ICE arabica futures have been under pressure due to concerns that global economic growth is slowing at the same time that Brazil, the leading producer, could potentially produce a record crop.

ICE stocks, which have fluctuated between 1 and 5 million bags over the past two decades, are currently hovering around 380,000 bags, mitigating some of these concerns and leaving the market susceptible to volatility.

Read more • reuters.com

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