Coffee Market on the Rise: Robusta and Arabica Witness Significant Gains

The coffee market saw significant movements, with robusta and arabica coffee contracts experiencing notable increases. Robusta closed up 2.5%, reaching its highest level since the start of contract trading, driven by tight supply in Vietnam and concerns over the crop. Meanwhile, arabica saw a 2.9% increase, hitting its highest peak in over 18 months. This rise was attributed to growing demand and the net bought position from funds, highlighting an upward trend in the market.

Fundamental factors continue to play a crucial role in coffee market movements. Tight supply in Vietnam, combined with uncertainties surrounding crop prospects, sustained robusta coffee prices, reflecting increasing demand for this variety. Additionally, arabica coffee saw a significant increase, driven by net bought positions from funds, suggesting continued optimism regarding arabica prices.

Fund participation in the coffee market is also contributing to price dynamics. The increase in net bought positions from funds in arabica coffee underscores investors' confidence in this variety. This fund activity, coupled with favorable market fundamentals, is fueling the upward trend in coffee prices, indicating an optimistic outlook for market participants.

Source: Investing.com