Coffee’s Meteoric Rise Collapses Along With Brazil Shortage Fear
- Arabica futures sag 19% from December top; supply concerns ebb
- Brazil predicts another bumper crop; stockpiles appear ample
A worker bags coffee cherries during harvest in Minas Gerais state, Brazil.
Photographer: Patricia Monteiro/BloombergThis article is for subscribers only.
In just a few short weeks, coffee has gone from star performer to teetering on the edge of bear-market territory amid shifting perceptions on supplies in Brazil, the world’s top producer and exporter.
On Friday, arabica beans for March delivery capped a third straight weekly decline to settle at $1.1215 a pound on ICE Futures U.S. in New York. The price has dropped 19% from a December peak, just shy of the 20% threshold that defines a bear market.