Coffee futures prices experienced a significant correction on Tuesday, July 7, with both New York and London markets giving back a large portion of the gains from a historic rally the previous day. The sharp downturn followed a session that saw record-setting price increases, particularly for Arabica contracts.
On the New York ICE exchange, the September Arabica contract plunged by 32.35 cents, a 9.2% decrease, to close at 317.60 cents per pound after reaching an intraday high of 350 cents. In London, the September Robusta contract fell by $172, or 4.3%, to settle at $3,872 per tonne, down from a daily high of $4,121.
The price drop is being interpreted as a technical correction as traders took profits following Monday's surge. That rally saw the New York market post a 16.2% gain, its fourth-largest single-day percentage increase on record. Despite the volatility, market analysis suggests the underlying bullish sentiment remains, with prices continuing to trade in the upper part of their 12-month range.