Brazil Swedish-quality beans were 14 cents below New York's December arabica contract on Friday, compared with minus 10 last week. "Traders are finding differentials for Brazilian beans are still too high," another trader said. "If differentials remain as high we will not see much activity in coming weeks either."
March arabica coffee futures were down 1.55 cents, or 1 percent, at $1.4940 per lb at 1304 GMT, drifting back down towards the two-and-a-half-year low of $1.4635 reached on Wednesday. Dealers said that the arabica coffee market was struggling to absorb a large Brazilian crop this year, while the prospects for next year's harvest in the world's top producer were favourable. Brazil is likely to ship about five million fewer bags of green, unroasted coffee this year than in 2011, even though a larger crop was gathered this year, the Council of Green Coffee Exporters said on Thursday, citing slower sales and weather-related delays.