MILAN — Coffee futures prices in New York rose sharply in Wednesday reaching a 3-month high on renewed drought concerns in Brazil and fears of lower production and tightening supplies in the world market. Lower certified Arabica stocks and a firm Real also impacted the market.
The most active contract for July delivery closed 820 points up or 3.5% higher, at 239.45 cents per lb, having hit an intraday of 240.65 cents, the highest level since February.
ICE Robusta coffee prices for July delivery closed up $30 (+1.42%) at $2,136 a tonne.
Climatempo Wednesday forecasted a limited chance of rain in Brazil over the next ten days.
Also, Somar Meteorologia reported Monday that Minas Gerais received no rain in the past week.
ICE certified arabica stocks continued their descent, falling to 1.04 million bags, their lowest since mid-March.
“ICE certs are dropping at a larger rate. Rumor, well founded, that another 350k are coming off soon,” said a U.S.-based trader quoted by Reuters.
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