New York's most-active coffee futures contract rose to $1 a pound on Tuesday, a level not seen in this market since July 2000, raising the spectres for price hikes to consumers, analysts said. New York Board of Trade's most-active March arabica contract settled at 97.45 cents a lb, down 0.40 cent, after dealing from 95.10 cents to a contract peak at $1. "The roasters are watching this.
If coffee prices are sustained over $1, then they are going to lift prices," said Ann Prendergast, a commodity analyst at Reface Group.
London's most-active robusta contract for January delivery surged to $772 a tonne, the highest price since July 2, before ending at $738.
Coffee futures have jumped more than 20 percent this month, thanks to a recent influx of cash from managed-money funds looking for a new asset as the US dollar weakens. Meanwhile, the prospect of less arabica coffee produced next year from leading grower Brazil has helped buoy prices.
Starbucks Corp, the world's largest coffee shop chain, boosted prices at company-owned stores in North America by an average of 11 cents from October 6. It was the Seattle-based Company's first price hike since August 2000.