Coffee futures recovered from its suffering last Monday as it went back to the green territory on Tuesday after reports showed that the Vietnam government reached its 3-year high on its coffee exports last month.
Early Recovery
Prices of the brown commodity pulled off an early recovery on Tuesday despite a limited follow through selling. May robusta coffee surged up about 1.3% to its strength to reach its $ 2 134 peak at the close, erasing its 1.2% decline recorded on Monday.
Meanwhile, the Arabica coffee futures did not fare that well but were able to move an inch as it tacked on just 0.57% to close at $ 1 419 per pound. In the previous session, it fell down sharply by almost 3.5%.
The improvement on Tuesday was lifted by robust February coffee exports in the world’s largest robusta producer as its government expects its shipments of the commodity to reach 130000 tons, equivalent to 2.17 million of 60-kg bags, a 9% advance compare to the same month last year.
This recent volume tallied last month contributed to the total 650000 tins coffee exports since October 2016, the start of the current 2016-2017 crop year, which will through September 2017.
In other news, the International Coffee Organization has forecasted a downfall on the Brazil’s coffee output, a 10% dive in the upcoming year, a measure that will range between 43.65 million and 47.5 million.