Coffee prices fell sharply on Wednesday and triggered a circuit breaker at the ICE futures exchange. The decline brought prices near 18-month lows, according to Reuters.
Coffee buyers are holding back on purchases because they think prices will fall more, the report said.
“It’s difficult for there to be significant buying when all people are thinking about is that there’s going to be a bumper 2012-2013 Brazilian crop,” Coffee Network analyst Andrea Thompson said in the article.
“Buyers of coffee from Brazil, the world’s largest producer, are getting a bigger discount for beans as the new-crop harvest approaches,” Bloomberg News said in a separate report this week.
iPath Dow Jones-UBS Coffee Sub Index Total Return ETN