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Coffee prices dip on demand concerns

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October 31, 2022

Coffee prices have recently faltered in response to rising demand concerns, according to a barchart.com report.

Arabica coffee prices fell 5.26% Friday, extending a three-week decline to a new 15-month nearest-futures low.

Robusta coffee dropped 1.54% Friday to a 14-month nearest-futures low.

Coffee prices are reacting to demand concerns caused by rising global inflation, higher interest rates and fears about recession. Chinese COVID lockdowns also raised concerns on Friday.

Weakness of the Brazilian real, which consolidated slightly above a one-month low, has also caused concern. A weaker real drives Brazilian export sales.

Coffee prices are also reacting to improved supply prospects. Frequent rain in Brazil bodes well for Brazil's 2023/2024 coffee crop.