A holiday in one of the world's top markets prompted coffee futures to push to their top value in more than five months on Tuesday, according to Bloomberg.
Tet, the festival that indicates the Lunar New Year, is ongoing in Vietnam. The Asian nation is the world's largest generator of robusta. In turn, that cuts down on the amount of pressure that prices are enduring.
"The Tet holiday in Vietnam has probably kept much pent-up selling out of the market, but this is sure to find its way in soon," states a Tuesday report authored by analysts with ABN Amro Clearing Bank NV, according to Bloomberg. Arabica coffee beans gained "additional support from the underlying fundamental story of the hot, dry weather in Brazil."
At 9:09 a.m. on Tuesday, coffee futures dropped 1.32 percent, a 0.018-cent fall to $1.3415 per pound.
Reuters reports concerns are growing about the integrity of coffee crops in Brazil, a top grower of the Arabica coffee bean variety. The nation endured a January that was markedly hotter than expected, according to the news source.
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