After starting the day with appreciation, the Arabica coffee futures market retreated and returned to operating with depreciation for the main contracts. Prices are being pressured by new data from the International Coffee Organization (ICO) released this Wednesday (8).
At around 12:12 (Eastern time), December/21 had a drop of 125 points, worth 192.70 cents/lbp, March/22 was down 120 points, quoted at 195.45 cents/lbp, May/22 was low 140 points, worth 196.35 cents/lbp and July/22 had a drop of 115 points, worth 197.05.
On the London Stock Exchange, after several sessions of appreciation, the market also retreats on Wednesday. November/21 had a decrease of US$ 20 per ton, worth US$ 2083, January/22 had a decrease of US$ 8 per ton, quoted at US$ 2064, March/22 had a decrease of US$ 5 per ton, worth US$ 2007 and May/22 had an increase of US$ 2 per ton, worth US$ 1995.
“A substantial reduction in world production is expected in coffee year 2021/22, as some important sources have been affected by climate-related shocks. Total supply is expected to fall below world consumption,” the intergovernmental body said.
The ICO did not provide a figure for the deficit projected for next season, but raised its surplus estimate for 2020/21 from 2.30 million bags to 2.6 million bags, mainly due to a lower consumption projection.
Consumption is now estimated at 167.01 million bags this season, from a projection of 167.58 million bags in its previous report and down from the 167.6 million bags seen before the pandemic.