Coffee futures in New York advanced to a 13-year high on concern that global supplies will be limited. Sugar climbed to the highest price in almost six months.
This year, arabica coffee has surged 41 percent, the most among 19 raw materials in the Reuters/Jefferies CRB Index, amid slumping inventories and speculation that too much rain would damage crops in Brazil and Colombia, the world’s biggest producers of the milder grade.
“We expect coffee prices to trade higher with arabica availability being extremely tight in the near term,” Hussein Allidina, the head of commodities research at Morgan Stanley in New York, said in a report.
Arabica coffee for December delivery gained 5.35 cents, or 2.9 percent, to settle at $1.923 a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached $1.9355, the highest level for a most-active contract since Sept. 5, 1997.
“I have never seen in 14 years such a strong market,” said Nestor Osorio, the outgoing executive director of the International Coffee Organization. Brazil and Vietnam have “problems” in bean quality, he said.
Robusta-coffee futures for November delivery gained $3, or 0.2 percent to $1,620 a metric ton on NYSE Liffe in London. The price has gained 25 percent this year.
In Vietnam, the top robusta grower, rain may delay the start of its harvest for one month into December, Morgan Stanley said.
Arabica is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa.
Sugar, Cocoa
Raw-sugar futures for October delivery gained 0.85 cent, or 4.1 percent, to close at 21.45 cents a pound, the biggest gain since Aug. 10. Earlier, the price reached 21.52 cents, the highest level since March 9.
Pakistan may buy as much as 500,000 metric tons of raw sugar by December, according to the nation’s sugar-mill association.
White-sugar futures for December delivery rose $9.70, or 1.8 percent, to $558.60 a ton in London.
Cocoa futures for December delivery declined $50, or 1.8 percent, to $2,722 a metric ton in New York.
In London, cocoa futures for September delivery fell 22 pounds, or 1.1 percent to 1,943 pounds ($2,986) a ton in London.