Coffee futures settled the trading session lower, extending the agricultural commodity’s weakness over the last month. But could the bean brew up a monumental rally in the coming weeks and months? With shrinking supplies, higher wholesale supplies, and container shortages, coffee prices could retest all-time highs of $1.40.

May coffee futures tumbled $0.0085, or 0.67%, to $1.2675 per pound at 19:31 GMT on Thursday on the US ICE Futures exchange. Coffee has plummeted nearly 5% over the last week, bringing its March loss to more than 7%. Year-to-date, coffee is down 0.4%.

According to new US Commodity Futures Trading Commission (CFTC) data, hedge funds and money managers slashed their net-long positions in coffee and sugar by 2,919 contracts and 1,246 contracts, respectively. Long cotton positions rose by 4,259, while long cocoa positions slumped by 577 contracts.

But were these moves a bit too premature?

In the US, coffee stockpiles have declined to their lowest levels in six years, mainly because of cargo disruptions. The US had imported vast volumes from Brazil after it experienced a record crop. However, looking forward, the South American country is projected to face a market deficit in the coming months amid rebounding demand.

The cargo market is interrupting the global good trade, adding to the upward trajectory in international food inflation. New numbers from Marex Spectron forecast that the global coffee deficit could increase to 10.7 million bags in the 2021-2022 season, higher than the previous estimate of eight million bags.

If this is the case, why are coffee prices not skyrocketing? One of the reasons is that roasters are relying on their inventories instead of increasing prices. But this might be temporary amid decreasing supplies and a smaller Brazilian crop.

In other agricultural commodities, May corn futures edged up by $0.0125, or 0.23%, to $5.525 per pound. May wheat futures shed $0.10, or 1.58%, to $6.2475 a bushel. May soybean futures added $0.825, or 0.58%, to $14.315 per bushel.