Arabica Coffee Prices Plunge Nearly 5 Percent

A Marex Spectron report on Thursday said that weather risks to crops in several countries including Colombia, India and Vietnam appeared to be moderating.

Arabica coffee futures on the ICE Futures exchange in New York ended negative at the close of trading on Friday morning (20/05). The decrease in the price of Arabica coffee was triggered by the projection of a coffee production surplus.

A Marex Spectron report on Thursday said that weather risks to crops in several countries including Colombia, India and Vietnam appeared to be moderating.

Marex Spectron forecast a global coffee surplus of 1 million 60 kg bags in 2016/17, against a deficit of 2.2 million bags in the previous season.

See:Arabica Coffee Prices Drop 2 Percent

Arabica coffee futures for the most active July 2016 contract closed down at 1.2395 dollars, down -6.15 cents or -4.73 percent.

The Vibiz Research Center analyst predicted that the movement of Arabica coffee futures prices on the ICE Futures exchange in New York in the next trading period still has the potential to weaken as coffee production recovers.

Arabica coffee futures prices on the ICE Futures exchange in New York have the potential to test the support level at 1.2100 dollars and 1.1800 dollars. Meanwhile, the resistance level that will be faced if there is an increase is at 1.2700 dollars and 1.3000 dollars.

Freddy/VMN/VBN/Analyst-Vibiz Research Center
Editor: Asido Situmorang

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