Arabica, robusta coffee futures hit highest prices in 10 years

Futures of arabica and robusta coffee rose to their highest price levels in more than 10 years on Tuesday on ICE, boosted by supply tightness due to lower production and transportation hurdles.

* March arabica coffee rose nearly 4% to $2.4205 per lb, after peaking at $2.4475 – its highest since October 2011.

* Rabobank said worries about logistical issues has spurred panic buying across the market.

* Dealers said roasters are rushing to buy, having collectively given up on the hope that prices will fall.

* They also noted nearby coffee futures are moving to a premium versus those further out, indicating supply tightness.

* January robusta coffee rose $46 to $2,297 a tonne. It hit $2,327 earlier in the session, the highest price since Aug. 30, 2011.