Concerns about slow purchasing amongst roasters prompted coffee futures to plunge to their lowest value in nearly two months on Friday, according to Bloomberg.
Inventories during the past 14 days have dropped 6 percent. Concerns about tapering supplies of the soft commodity are relaxing.
"The technical picture has deteriorated for robusta and the next target seems to be $1,721 a ton," states a Friday email authored by broker Alex Parry with ABN Amro Markets U.K. Ltd. in London, according to Bloomberg. "System funds are selling and roasters aren't aggressive buyers at the moment. Spreads have also weakened after the shock of the previous certified stocks draws."
At 9:10 a.m. on Friday, coffee futures were even at $1.1705 per pound.
Reuters reports recent sharp drops of coffee futures prompted Indonesian exporters' apprehension about selling late this week, according to dealers. The likelihood of a bumper crop in Vietnam, a top producer of robusta coffee beans, tugged down coffee futures lower than their weakest rate since the beginning of last month.
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