Arabica and Robusta prices went in opposite directions this month, with Arabica prices dropping back down after March’s rally, while Robusta increased to the highest monthly average since November.

From the “Report on the coffee market in April 2016” by the International Coffee Organization:

Arabica and Robusta prices went in opposite directions this month, with Arabica prices dropping back down after March’s rally, while Robusta increased to the highest monthly average since November. Total exports in the first half of coffee year 2015/16 are estimated up by 1.6% to 55.5 million bags, showing that the coffee market continues to be well supplied, although concerns linger over Robusta availability.

The monthly average of the ICO composite indicator was relatively unchanged compared to last month, up 0.1% on 117.93 cents. Daily prices dropped to a low of 115.23 cents early in April, rising to a high of nearly 121 cents over the next couple of weeks. Overall, prices stayed in a relatively narrow band as the movements in the four group indicators mostly cancelled each other out.

The three Arabica groups all fell slightly after their brief rally in March, but remain above their levels of October through February. Robustas, on the other hand, jumped by 6.1% to a monthly average of 80.18 US cents/lb as reports of drought in several Robusta growing regions have spurred speculation over potential shortages. As a result, the Arabica/Robusta arbitrage, as measured on the New York and London futures markets, dropped by over 10%, with the daily differential falling below 50 cents for the first time since November.

Read full report “Coffee Market Report April 2016“