FreepikArabica coffee futures are experiencing a boost as the most recent figures from Intercontinental Exchange (ICE)-monitored arabica coffee stockpiles dropped to a 24-year low. This comes after the International Coffee Organization (ICO) cautioned just a few months ago that global coffee supplies are dwindling. Stockpiles of the premium bean held in exchange-monitored warehouses dropped to 380,033 bags as of Wednesday, the lowest since May 1999. 
December arabica coffee futures rose as much as 4% and could be primed for a much higher move as global inventories tighten. 
John Goodwin, a senior commodity analyst at ArrowStream, told Bloomberg that the tightening supply situation is contributing to the overall bullish outlook for the bean. Despite recent rainfall in Brazil that could be favorable for the coffee crop, he said it seems “way too early” to make trades based on rain patterns, citing “still too many question marks out of Brazil and Colombia for me to believe this recent rally is already over.” According to a Sept. 14 report from the ICO, global coffee exports from October to July were down 5.7% at 103.736 million bags. Breakfast lovers are keeping an eye on the evolving supply situation in the coffee space. Many folks are already squeezed after orange juice prices surged to record highs. More By This Author:Fed Turns Massive $33BN Bank Deposit Outflow Into $51BN Inflow
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