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Arabica,robusta coffee futures jump to multi-month highs

Arabica and Robusta coffee futures on ICE climbed to multi-month highs on Wednesday, support by short-term supply tightness.

May arabica coffee settled 5.05 cents, or 2.6%, higher at $1.995 per lb after setting a four-month high of $1.9975.

Dealers said the short-term supply tightness had led to a strengthening in the March contract’s premium to May KC-1=R to more than 6 cents per lb from around parity a few days ago.

The tightness has also led to rising prices in the physical market in Brazil, where farmers are in no rush to sell, and Colombia.

 ICE certified arabica stocks fell 17,106 bags on Wednesday to 814,966 bags as there are no more bags pending grading to be added and traders continue to withdraw coffee from the stocks.

May robusta coffee rose $72, or 3.4%, to $2,205 a tonne after peaking at a nearly five-month high of $2,208.

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