Coffee

Arabica coffee futures on ICE extended their recent slide to $1.44 per pound in January, touching their lowest since mid-May 2021, as the crop outlook by top producer Brazil remained favourable and global supplies - abundant. Dealers said rains in Brazil's coffee areas and further forecasts of showers would support cherry growth and improve soil moisture. In this regard, Somar Meteorologia reported that Brazil's Minas Gerais region, which accounts for about 30% of Brazil's arabica crop, received 115.4 mm of rain in the first week of the year, or 193% of the historical average. Additionally, the latest ICE arabica coffee inventory data showed another increase in global inventories. ICE arabica coffee inventories jumped to a six-month high of 842,771 bags as of January 10th, recovering further from a 23-year low of 382,695 bags on November 3rd, 2022.

Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on January of 2023.

Coffee is expected to trade at 153.50 USd/Lbs by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 139.97 in 12 months time.