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ICE Arabica and ICE Robusta both closed sharply lower on what appeared to be fund selling. Futures market is now moving to major Support areas, just underneath closing values of previous session.
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Current market tone and fundamentals suggest that supply of coffee is still available as world cash market remains slow with lack of demand being the primary issue.
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Commodity markets were mostly steady to softer in trade yesterday against a relatively steady USD, but with many markets again tending negative.
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Weather reports from Brazil for the month of April so far confirm some scattered rain fall has been experienced over most coffee production districts, though still proving to be below average.
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Tanzania’s coffee export volume fell 15% to 5.800 tons in February 2017 compared with 6.800 tons in February 2016. Production of both Arabica and Robusta expected to drop 20% this year mainly due to unfavourable weather and the natural biennial Arabica cycle.
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Uganda’s coffee exports rose 65% on the year as more newly planted trees entered the production phase. Shipments hit 409.916 60kgs bags, up from the 247.798 bags in the same month last season.

Table 1 – ICE Arabica Futures – 21 Apr – Source: Bloomberg

Table 1 – ICE Robusta Futures – 21 Apr – Source: Bloomberg

Coffee Table – Various Prices – Source Bloomberg & ICE
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