Arabica Coffee Trades Near 18-Month High as Cocoa Frenzy Spreads
- Hedge funds exiting cocoa market are now piling into coffee
- Roasters seen using more arabica as robusta supply tightens
Roasted Arabica coffee beans.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Arabica futures traded near their highest level since October 2022 as hedge funds exiting the cocoa market are now piling into coffee.
Money managers increased their bullish bets to the highest on record in the week ended April 2, according to the latest Commodity Futures Trading Commission data. At the same time, investors have reduced bullish bets in cocoa after a record-breaking rally that saw prices more than double this year.