Robusta coffee closed down after hitting a new four-year high

Robusta coffee futures on ICE closed down after hitting a new four-year high on Wednesday.

November robusta coffee LRCc2 settled down $24, or 1.1%, at $2,078 a tonne, after setting a four-year high of $2,130.

Dealers cited as supportive factors falling ICE exchange stocks, increased demand from roasters for robusta instead of its pricier arabica counterpart, as well as continued shipping backlogs, including out of top robusta producer Vietnam.

“For the time being, there is no foreseeable alleviation to the international squeeze on global supply chains,” said trader I&M Smith.

Strict measures to stop the spread of COVID-19 in Vietnam are prompting further supply jitters.

The International Coffee Organisation said in its July report that global production will likely fall some way below demand in the upcoming season that starts in October.

December arabica coffee KCc2 lost 3.75 cents, or 1.9%, to $1.902 per lb.