Arabica coffee futures on ICE rose to the highest level in more than a week on Wednesday as crop losses in top producer Brazil remained the main supportive factor, while robusta coffee climbed to a one-month peak.
* December arabica coffee closed up 0.6 cent, or 0.3%, at $1.8635 per lb, after climbing to a peak of $1.8825, the highest in more than one week.
* Dealers said the market remained underpinned by supply tightness, with a combination of drought and recent frosts in Brazil denting the outlook for coffee production this year and in 2022.
Given that coffee looks set to remain in short supply, there are reports that producers are noticeably reluctant to sell -Commerzbank.
* Losses from frosts may have affected 18-20% of Brazil’s crop, the agriculture minister said on Tuesday, revising up the scale of the damage.
* Brazilian farmers started to take out dead coffee trees after the frosts, and some will switch to grains.
* November robusta coffee LRCc2 settled up $2, or 0.1%, at $1,973 a tonne, after hitting a one-month high of $1,985.