New York coffee rallies to 13-1/2 year high

Arabica coffee galloped Wednesday to a 13-1/2 year high on tight supplies of high quality beans which may persist into the next crop season, analysts said. Sugar extended its losing streak although it seemed to be consolidating while cocoa was steadier in thin business.
New York's March arabica coffee futures climbed 6.00 cents or by 2.4 percent to close at $2.536 per lb, its loftiest settlement since June 1997. Arabica coffee jumped on heavy spread dealing, fund buying and a lack of origin selling, supported by a shortage of high-quality beans.
The key March raw sugar contract on ICE Futures US rose 0.34 cent to finish at 31.50 cents per lb. US cocoa futures climbed in heavy March/May spreading ahead of the March first notice day on Monday, as the spread narrowed and was nearly finished. Options-related dealings also spurred some buying on the futures market, dealers said. The May cocoa contract in New York gained $23 to finish at $3,283 per tonne.