Coffee “C” futures for December delivery gained for the first time in three trading sessions on Thursday, climbing 1 percent to close at 179.6 cents per pound on the IntercontinentalExchange.
Weather threatening supplies was once again one of the motivating factors, as heavy rains in Colombia, the fourth-largest producer of the caffeinated bean, threaten to damage the harvest in that country. In addition, regulators in Burundi made an announcement, saying that the current year’s harvest may be as much as one-quarter smaller than last year’s, according to Bloomberg News.
“People are concerned about short-term supplies,” Boyd Cruel, a senior analyst at Vision Financial Markets, told the news service. “There is also a lot of technical buying.”
The increase in coffee futures was contained to arabica beans, which command a price premium over the robusta variety. Arabica is typically used for specialty coffees and higher-end coffee houses, while robusta goes into instant coffee as well as espresso blends.
On the Liffe in London, robusta futures dropped $2 to $1,571 per metric ton.
Overall, the price of arabica beans has climbed 32 percent since 2010 began.
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