Arabica Set for Largest Monthly Gain Since 2014 on Supply Fears
- Futures are near record high on concerns over Brazil crop size
- Traders watch for more signs exporters struggle with finances
A worker carries packaged arabica coffee cherries on a farm in Tepecoyo, La Libertad department, El Salvador.
Photographer: Camilo Freedman/BloombergThis article is for subscribers only.
Arabica coffee futures are on track for the biggest monthly jump in more than a decade, with a rally fueled by global supply concerns and fears that exporters will face financial stress.
Traders are watching for more news that exporters are struggling with their finances, Sucden Financial broker Harry Howard wrote in a Friday note. That’s after two Brazilian companies jointly filed a request with a local court this week asking for a 60-day grace period while renegotiating with creditors.