Robusta coffee futures for July delivery rose almost 7 percent to $1,573 per metric ton after the International Coffee Organization (ICO) released its latest survey of the global coffee market today. The report featured news that exports from Vietnam, the world’s largest grower of robusta beans, fell by 20 percent from a year earlier, pushing prices higher.
Robusta beans are primarily used to produce instant coffee or cheap downmarket blends. The robusta bean, as its name suggests, is able to grow in a wider variety of climates and terrains, and its greater supply means that it often commands only half the price of an equivalent weight of arabica beans.
Arabica coffee, typically regarded as the finer variety and employed in gourmet coffee, espresso and whole bean sales, also rose in New York trading, reported Bloomberg.
If coffee ends the day up, it will mark five straight days of increasing prices.
The ICO report said that worldwide coffee consumption has increased for the past five years and looks set to grow again next, so strong demand could keep coffee futures rising or at least stable in the long term.
It will cost a bit more to sweeten that coffee as well, as raw sugar futures for July delivery rose just over 1 percent.
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