Coffee sets 12-year high

LONDON: Robusta coffee futures on ICE rose to a fresh 12-year high on Friday, boosted by tight supplies, while sugar and cocoa prices also climbed.

July robusta coffee rose 1.7% to $2,583 a tonne by 1335 GMT after setting a 12-year high of $2,607.

Dealers said there appeared to be very limited supplies left in top robusta producer Vietnam and the market was awaiting a pick-up in shipments from Brazil.

“One factor supporting the rally is low Brazilian robusta exports so far. In our view we believe Brazilian stocks are currently rising and this coffee will soon appear in the exports as it cannot be all consumed internally,” Rabobank said in a note, adding that prices would need to rise high enough to incentivise Brazilian exports.