Commodities: Coffee price soars to its highest level in nearly 10 years

After a slight drop, Arabica coffee shot up in the New York Stock Exchange. March contracts, the most liquid, climbed 4.6% to US$2.3475 per pound, the highest since 2012. Other commodities (sugar, cotton and cocoa) also fluctuated heavily.

RIO DE JANEIRO, BRAZIL - Concern with the supply of coffee in Brazil continues dominating business. Frosts and dry weather have compromised the 2022/23 Brazilian crop, which should have been larger than for 2021/22.

Rabobank forecasts a harvest of 63.5 million sacks for the season (42 million of Arabica and 21.5 million of Conilon), a volume similar to the 2016/17 cycle. Last year, Brazil harvested 72 million bags, 53 million of which were Arabica.

Production is also expected to be lower than initially forecast in Vietnam, the largest global producer of Robusta. According to Price Futures . . .

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