Arabica coffee commodity futures rose on Tuesday for the fourth-straight session, with the latest upside coming from technical buying after it broke through an important technical level.
Arabica coffee got renewed buying interest as traders noted soil moisture conditions in Brazil. Showers over the weekend did not decrease concerns, as the drought is widespread across the country’s coffee growing region.
On Tuesday, Arabica coffee commodity futures rose 1.5% to $1.5185 per pound, their highest price point since February 2nd. The May contract broke the 200-day moving average, while Robusta had a slow session, rising 0.1% to $2,189 per ton.
Brazil Robusta farmers are concerned about coffee imports. After three years of drought supplies of robusta beans are so low that the country could soon allow imports, an unprecedented move the largest coffee grower and exporter. In three hundred years of Brazil’s coffee growing history the country has never imported large amounts of beans, said Nathan Herszkowicz, executive director of the Brazilian Coffee Industry Association.
