The coffee price slumped again last week but had recovered a little as of 23 April 2019.
The Arabica price fell below 90 US cents per pound and as low as 87 cents/pound.
Commerzbank Research said there was no particular news that explained the price slide other than the very large crop expected in Brazil, coupled with technical selling after the price dropped below its previous low of 91 US cents and then the psychologically important level of 90 US cents.
“The fact that the Brazilian real is now weaker again was the last straw because it makes Brazilian coffee exports cheaper, providing an incentive for additional exports,” Commerzbank said.
“The measures announced by the Brazilian government to support the coffee farmers who are suffering from the low prices will do nothing to halt the price slide. After all, they will prevent a market adjustment process that crowds out unprofitable suppliers. It is thus plausible that the price will fall even further.”
At the time of writing, the C prices was 90.70 cents.