Coffee's Still Reeling From a Glut. But for How Much Longer?
- Arabica futures aren’t far away from the lowest in a decade
- Speculators remain bearish, but Olam says prices may rally
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Coffee bulls have had a tough couple of years as prices kept sliding on the back of a global oversupply, and for arabica investors, 2019 is so far proving no different.
The variety, favored for specialty drinks such as those made by Starbucks Corp., is trading near the lowest since September and isn’t far off a 12-year low. Much of the slump is because of Brazil, which harvested a record amount of coffee in 2018 and is preparing to collect another big crop this year.