Arabica coffee futures on the ICE exchange rose by 0.2% to $3.2360 per lb by 1453 GMT, having hit their highest since 1977 at $3.3545. Prices for arabica coffee have now risen by about 75% this year, making it one of the strongest performing commodities alongside cocoa, for which prices have more than doubled.
The price trend is now very similar to that of cocoa at the beginning of the year. The reasons are also comparable. In the case of cocoa, it was poor harvests in the two most important producer countries, Ivory Coast and Ghana. In the case of arabica coffee, it is concern about a poor crop in Brazil, the most important producer country, next year due to drought.
Brazilian coffee traders Atlantica and Cafebras said on Wednesday that they will negotiate with their creditors in court, noting 900,000 60kg bags of coffee promised by farmers have not been received.
The price of robusta coffee, a cheaper bean often used in instant coffee, also rose to its highest in about 47 years on Friday. Robusta coffee futures on ICE peaked at $5,694 a metric ton on Friday before turning lower to stand 0.9% down at $5,479.
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