Arabica coffee futures reach one-month high on supply concerns

Arabica coffee futures on the ICE exchange hit a one-month peak on Monday due to concerns over diminishing Brazilian supplies, according to market data from Investing.com. The futures climbed 1.5% to $3.1030 per pound, surpassing their previous high of $3.1380 earlier in the session. This surge came as the Brazilian real strengthened, which is unfavorable for exporters as it diminishes their gains upon converting to local currency.

The Brazilian real's rise was attributed to expectations that Flavio Bolsonaro would be elected as the country's next president. Market participants are becoming increasingly worried that the supply of Brazilian Arabica coffee may not arrive at ICE warehouses before the December contract ends. At the same time, Robusta coffee prices increased by 1.5% to $3,454 per metric ton, while sugar and cocoa prices declined during the trading session.