September arabica coffee (KCU26) on Wednesday closed down -7.80 (-2.46%), and September ICE robusta coffee (RMU26) closed down -131 (-3.38%).
Coffee prices fell sharply for a second session on Wednesday, giving back nearly all of Monday's parabolic rally. The surge in coffee prices to Monday's significant highs pushed prices to heavily overbought levels, sparking technical selling that prompted profit-taking. Also, Intercontinental Exchange's action this week to raise margin requirements for coffee futures trading has fueled long liquidation pressures, further weighing on prices.
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