Arabica coffee maintains its upward trajectory and reaches a new record on the ICE.
Arabica coffee futures on the stock exchange considered a global price benchmark have reached an all-time high.
NEW YORK (Reuters) Arabica coffee prices hit a new record for the eleventh consecutive session on Thursday, this time reaching $4,11 per pound, as supply concerns and trader nervousness also increased over the threat of trade tariffs.
Arabica coffee futures on the ICE exchange, considered a global price benchmark, reached $4,1125 per pound earlier in the day, their highest level ever. They closed up 1,6% at $4,0395 per pound.
Earnings for the year have already exceeded 25%, following a 70% increase last year.
Traders cited ongoing fears about the prospect of reduced supply from major producers, Brazil and Vietnam, along with concerns that the Trump administration might impose trade tariffs on major South American coffee producers.
This threat that coffee may have to be redirected due to tariffs comes amid an already difficult logistical scenario.
"In today's market, 'spot coffee is gold, afloat is silver, and FOB (free-on-board) is lead'," said Tomas Araujo, a coffee broker at StoneX.
However, high prices are starting to attract coffee stocks to the ICE exchange.
Data from ICE shows that the number of bags pending classification has increased by 130.156 in the last five sessions.
Robusta coffee, a generally cheaper variety used to make instant coffee and blends, saw little change, at $5.646 per metric ton. It reached $5.840 last week, the highest price since the contract began trading in 2008.
Coffee exports from Vietnam, the world's largest producer of robusta, fell 41,1% in January compared to the previous year, according to government data. This follows a 17,2% decline last year.
Traders said Vietnamese farmers are eager to sell after the Lunar New Year holidays, but according to the Vietnam Mercantile Exchange, supplies remain tight relative to demand.
In other commodities, cocoa futures in New York closed down $390, or 3,7%, at $10.127 per ton, having previously hit a one-month low of $9.911, while cocoa in London fell 3,1% to 8.139 pounds per ton, having also previously hit a one-month low.
Raw sugar futures fell 0,19 cents, or 1%, to 19,57 cents per pound, having previously hit a 1-month high of 20,19 cents, while white sugar fell 1,1% to $522,40 per tonne.
(Reporting by Maytaal Angel and Marcelo Teixeira)
