Robusta coffee climbs to 12-year high on tight supplies

Robusta coffee futures on ICE climbed to a 12-year peak on Monday, buoyed by supply tightness driven by strong demand, while arabica prices eased.

July robusta coffee LRCc2 rose 1% to $2,614 a tonne by 1250 GMT after peaking at a 12-year high of $2,641.

Dealers said supplies remain tight partly owing to strong demand as roasters increase the proportion of robusta in blends and cut use of more expensive arabica beans to help to cut costs at a time when global economic woes are prompting many consumers to look for cheaper options.

They noted there was very little coffee left from the last harvest in top robusta producer Vietnam while newly harvested robusta supplies from Brazil have yet to reach theglobal marketin significant volumes.

Source: Reuters

Read more article: