Arabica coffee futures on ICE were trading around $2.1, down from a 3-1/2-week high of $2.3 hit on May 17th, amid a slightly stronger real and amid receding frost risk in top producer Brazil. Weather forecasters said that winds and clouds in Minas Gerais, Brazil's largest arabica-growing region, prevented a severe drop in temperatures that removed the threat of crop-damaging frosts from developing. Still, the market remains on edge over frost risk in Brazil this season given frosts last year severely damaged the crop and sent prices to decade highs. At the same time, the Green Coffee Association reported recently that US April green coffee inventories rose +1.5% m/m and +2.5% y/y to 5.907 million bags.
Historically, Coffee reached an all time high of 339.86 in April of 1977. Coffee - data, forecasts, historical chart - was last updated on May of 2022.
Coffee is expected to trade at 223.00 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 244.03 in 12 months time.