LONDON, May 23 (Reuters): Robusta coffee futures on ICE fell on Thursday as the market consolidated Wednesday's near 5 per cent surge, though concerns over dry conditions in top producer Vietnam continue to underpin the market.
July robusta coffee fell 3.4 per cent to $3,785 a tonne at 11:27 GMT after rallying to a three-week high of $3,928 on Wednesday.
Dealers in Vietnam said while there had been some showers recently in the coffee growing areas, it was too little too late with damage due to dryness already recorded, plus they expect a lack of rain in the next five to seven days.
They also noted that farmers remain reluctant to sell but added prices are extremely lofty, and whether prices exceed their recent record highs depends on supplies from Indonesia and Brazil. Also, July arabica coffee fell 3.4 per cent to $2.1180 per lb.
Dealers said quality concerns keep escalating in top arabica producer Brazil - where the harvest is in its early stages - while logistics remain challenging at the country's congested ports.
At the same time meanwhile, the International Coffee Organization says traders are speeding up shipments to Europe before the new European deforestation law enters into force.
Brazil co-op Cooxupe expects a larger crop in 2025, while it is keeping its projections for volume increases in 2024.
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