Arabica coffee futures on ICE hit the highest price in more than three months on Wednesday on signs of tightening supplies and as the Brazilian real remained firm versus the dollar.
July arabica coffee settled up 8.2 cents, or 3.5%, at $2.3945 per lb, having hit the highest since February at $2.4065.
ICE certified arabica stocks continued their descent, falling to 1.04 million bags, their lowest since mid-March KC-TOT-TOT.
"ICE certs are dropping at a larger rate. Rumor, well founded, that another 350k are coming off soon," said a U.S.-based trader, who also noted the strong Brazilian currency as a supporting factor behind the price jump.
"Our expectation is for inventories to go down for the remainder of the year and possibly most of next year," said Rabobank in a note, adding that it thinks most of the stocks' reduction has been priced in.
July robusta coffee LRCc1 rose $30, or 1.4%, to $2,136 a tonne.