The key drivers of the fall were weakening logistics concerns, weather factor and market corrections. Improved global shipping flows reduced speculative panic. Favorable conditions in key growing regions eased concerns about grain shortages. After reaching peak values, the market corrected downward amid profit taking by traders.
Exchange prices for Arabica coffee experienced a sharp correction. Futures prices fell to the area of $2.70 per pound (less than $6,000 per ton), having updated the lows from November of the previous year and corrected after a strong spring rally.
Despite the current downturn, the coffee market as a whole remains highly volatile. Long-term quotes remain under pressure from climate change (droughts, floods), soil depletion and a complex geopolitical environment. According to analysts, the average value of the pound is holding at historically elevated levels and prices are expected to remain sensitive to any supply shocks.
