The 13 percent gains enjoyed by coffee futures during the past five trading sessions is likely to continue amid the reduced amount of exports from Vietnam, the globe's top producer of robusta coffee, an analyst with Rabobank International told Bloomberg.
"The market could see levels as high as $2,150 a ton due to a large bet placed on the options," analyst Keith Flury with Rabobank International told the news service on Monday. "The large open interest in the call option at $1,950 a ton for March has attracted futures buying."
At 1:41 p.m. on Tuesday, coffee futures dropped 3.7 percent, a 7.95 cent loss to $2.0665 per pound.
The past week has seen robusta coffee futures gain during the past week amid the slowdown from Vietnam. Robusta is heavily used for instant coffee and espresso while also for roaster buying. Brazil and Indonesia, respectively, are the globe's second- and third-largest robusta growers.
Reuters reports Arabica coffee futures dropped early during the Tuesday trading session, pulled down by Moody's Investors Service slashing the credit rating of six nations in Europe.
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