LONDON: The relentless coffee price rally continued on Thursday with arabica prices hitting a new record approaching the $4 per lb level as supplies remain extremely tight and fears over the outlook persist.
Arabica coffee futures on the ICE exchange, used as a benchmark to price physical beans around the world, hit a record $3.72 lb earlier, marking gains in the year to date of nearly 15%.
They were up 1.1% at $3.7040 by 1207 GMT. Dealers said exchange data shows the world’s top roasters like Nestle and JDE Peet’s are under-bought and still have much buying to do, while speculators remain bullish coffee. This comes as supplies remain extremely tight in Brazil, which produces nearly half the world’s arabica, after the country experienced a severe drought last year that has dented the forecast for the upcoming crop.
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