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Arabica coffee rises to highest since 2017

Arabica coffee futures on ICE hit the highest price in three years and eight months on Monday, buoyed by the prospect of tightening supplies in coming months and a stronger Brazilian currency.

* July arabica coffee KCc2 settled up 4.9 cents, or 3.6%, at $1.4175 per lb​​, after peaking at $1.4415, the highest for the benchmark second month since August 2017.

* Dealers said Brazil was set to harvest a smaller crop this year while demand was expected to revive in the United States and Europe as COVID-19 restrictions are gradually eased and coffee shops reopen for normal business.

* Starbucks Corp SBUX.Ois expected to report record high second-quarter revenue as speedy vaccinations in the U.S. and China make customers more comfortable with returning to their morning coffee runs.

* A stronger Brazilian currency, trading at a two-month peak against the dollar, was also seen by dealers as supporting the market as it deters producer selling.

* July robusta coffee LRCc2settled up $24, or 1.7%, at $1,440 a tonne.

Also read  Coffee Prices (Karnataka) on 06-09-2022