Robusta coffee futures on ICE rose sharply on Thursday with the market supported by supply tightness
March robusta coffee rose 2.3% to $2,936 a metric ton by 1444 GMT as the market climbed back up towards a more than 15-year high of $2,970 set a week ago.
Dealers said supplies remain tight with farmers in top robusta producer Vietnam holding onto newly harvested supplies in the hope that prices will rise further.
“Farmers are now cultivating fruit trees such as durian and passion fruit alongside coffee trees so they have multiple sources of income and don’t have much pressure to release beans,” one trader in Vietnam’s coffee belt said.
Premiums in Indonesia also rose due to a scarcity of beans, traders said on Thursday.
March arabica coffee rose 0.2% to $1.9810 per lb.