Arabica coffee futures climbed to a six-week high on Monday as the delivery notice period for the spot contract opened with limited activity on the ICE exchange.
The arabica coffee contract settled 19 cents higher at $3.4165 per pound, marking a 5.9% gain for the session. Earlier in the day, prices touched $3.4255, the strongest level in six weeks, while the spot contract reached $3.7795, its highest price since January.
ICE certified arabica stocks continued their decline, approaching a 26-year low. Coffee broker and adviser Mike Nugent noted that the delivery notice period opened with minimal volume, with just a couple dozen notices issued.
The surge in prices coincides with the start of the delivery period for the spot contract, a phase typically associated with increased price volatility as market participants adjust positions ahead of potential physical deliveries.
