The coffee exchange scored a sizable rebound
17:46
Arabica futures are rising in price despite the risk of a recession in the US, in spite of hedge funds holding positions geared toward a decline.
New York Stock Exchange-listed derivatives on lower-quality Arabica coffee have risen more than $25 in the past three weeks, and are inexorably heading toward $180. The upward movement was triggered by news of a supply shortage of high-quality Robusta coffee, the price of which also jumped and broke through the $2,000 per contract barrier.
The sell-off in the coffee futures market began last October and continued without a break until the second week of January 2023. Its immediate cause was fear of a recession, which was expected to weaken demand.
