On Thursday, coffee prices hovered above a three-month high on signs of tightening global supplies.
Accordingly, arabica futures surged 3.63% or 8.40 points to $239.65 per pound, hitting the highest since February.
The latest uptrend came as stocks of the soft commodity continued their decline. The current Arabica supply skidded to 1.04 million bags, the lowest level since mid-March. In addition, experts also anticipated the inventories to go down for the rest of the year.
Moreover, traders noted that the strong Brazilian currency was a supporting factor behind the price jump.
At the same time, robusta contracts rose 1.42% or 30.00 points to $2,136.00 per tonne. The upturn followed a rise from a week earlier amid the persisting limited supply in Vietnam. The Southeast Asian country was the largest producer of robusta.
Nevertheless, experts anticipated coffee exports from the state to increase by 24.20% in the first five months of this year. The expected result would yield a total of 889,000 tonnes.
Overall, global exports of beans in April 2022 totaled 9.86 million of 60.00-kilogram bags. It came in lower than the 10.16 million bags in the same month of the previous year.
Furthermore, analysts projected world coffee consumption to grow by 3.30% to 170.30 million bags in 2021/22. This prospect is higher than the 164.9 million in 2020/21, supporting the strength of bean prices.
Coffee, Cocoa, and Sugar edge up on Thursday
Like coffee, cocoa futures also posted gains in the current trading session. As a result, it added 1.64% or 40.00 points to $2,536.00 per metric ton amid tight market supply.
The International Cocoa Organization forecasted a 174,000-tonne deficit in the current 2021/22 season. The guidance is slightly down from a previous projection of 181,000 tonnes.
Similarly, sugar contracts also followed the uptrend of coffee. The soft commodity gained 0.05% or 0.01 points to $19.41 per pound.
