The current crop is severely compromised, and there will be lower production this season because of the drought and premature flowering,” Sterling Smith, specialist at Citi Futures, says in telephone interview.

“It’s impossible for next year’s crop to be bigger than this year’s, and it has sparked increased nervousness in the coffee world”

Eoin Treacy's view

Arabica Coffee unwound its overbought condition relative to the 200-day MA following its impressive advance earlier this year and found support three weeks ago. A sustained move below $160 would now be required to question medium-term recovery potential.

Cotton has fallen for six consecutive weeks and while oversold in the short term, a clear upward dynamic will be required to check the decline.