Coffee rises to 13-year high amid speculation over Central American supplies
Wednesday, September 8, 2010
Coffee rose to a 13-year high in New York on concern about a potential lack of supply.
Arabica coffee for December delivery rose as high as $1.9865 a pound on ICE Futures U.S., gaining for a fifth day.
Coffee has surged 44 percent this year in New York amid slumping inventories and speculation that too much rain would damage crops in Brazil and Colombia, the world’s biggest arabica producers.
“Fear of supply shortage is bringing more and more speculators on the bandwagon, driving prices up ahead of the upcoming harvest in Colombia and Central America,” Carsten Fritsch, a Commerzbank AG analyst in Frankfurt.
Original source: Bloomberg