Robusta coffee hits 2-month high

Robusta coffee futures on ICE climbed to a two-month peak on Friday, boosted by concerns about supply tightness later this year.

Robusta coffee futures for September Delivery were trading up about 1% and touched a two-month high of $2.144.

“We are looking at a bit of tightness towards the end of the year and that is reflected in the structure and that is where the push higher has come from,” one dealer said.

According to various media reports Vietnamese coffee exporters have been forced into paying a premium to purchase beans from trading houses who purchased most of the robusta supplies earlier in the season on the expected supply tightness. 

The United States Department of Agriculture reported that Vietnam would harvest 28.6 million bags (1.72 million tons) of coffee from its 2017/2018 crop, a rise of 10% from the past season.

Arabica coffee prices tracked robusta higher on Friday, adding 0.5% to reach $1.2865 per lb. Arabica prices have bounced around, recently, with some weather woes in Brazil adding support but the commodity was under technical selling pressure.

Source:

http://www.economiccalendar.com