Last month, the spread between arabica and
robusta coffee prices fell to its lowest level in over
ten years. Elsewhere, France recently announced
that it will curb the use of palm oil in biofuels
owing to environmental concerns. In this
Commodities Watch, we first assess the key
drivers of the narrowing coffee spread and then
discuss the prospects for arabica and robusta
prices going forward. Finally, we discuss the
possibility of the EU limiting imports of palm oil
and the potential impact on the price.
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