Robusta coffee futures on ICE rose to a 4-1/2 year peak on Tuesday, boosted by ongoing disruption in the flow of coffee from Vietnam, while arabica coffee prices were also higher.
* January robusta coffee LRCc2 rose 1% to $2,216 a tonne by 0943 GMT after rising to a peak of $2,228 – the highest level for the benchmark second position since February 2017.
* Dealers said the market was supported by a major shortage of shipping containers in Vietnam that was curbing exports. Renewed outbreaks of COVID-19 in the country, the world’s top robusta producer, which could hinder cherry picking when the harvest gets underway next month, also boosted prices.
* December arabica coffee KCc1 rose 1.4% to $2.0545 per lb with a rally in Brazil’s real currency from a recent six month low providing some support.
* A stronger real deters farmers and exporters from selling dollar-priced arabica coffee by lowering returns in local currency terms.