December arabica coffee (KCZ26) closed down -12.50 (-3.88%) on Thursday, and November ICE robusta coffee (RMX26) closed down -59 (-1.63%).
Coffee prices sold off sharply for a second day on Thursday, with arabica falling to a 2.5-week low and robusta dropping to a 2-month low. The outlook for Brazil’s coffee harvest to add more supply to the market has eased supply concerns and sparked long liquidation in coffee futures. Most warehouses in Brazil are no longer accepting new coffee supplies as space fills up, suggesting farmers holding back sales in hopes of higher prices will have to increase coffee sales as storage space dwindles. Robusta coffee is also under pressure after ICE robusta coffee inventories jumped to a 9-month high on Tuesday.
