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Commodities  |  April 09, 2013 10:08:28

Arabica weakened in response to a more than adequate supply

ColosseumThe biggest drop in prices last month recorded in yesterday's trading session on the exchange ICE Futures U.S. most active futures contract on the type of Arabica coffee. Coffee respond to signs of decline in adequate supply and reports of higher yields in Brazil, the largest producer in the world that kind of coffee. According to recent figures increased export of coffee from Brazil in March by 11% compared to the previous year. Also export of Colombia, which is the second largest grower of Arabica, grown in the same period compared to last year by 12% and higher production is also expected in Indonesia and Ethiopia. According to yesterday's News International Coffee Organization World coffee production will rise by 6.4% to a record 144.6 million bags. Arabica futures for the May delivery date fell in yesterday's session on the ICE Futures U.S.3% to the closing price of 135.90 cents per pound weight.

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