Coffee Prices Continue Rising Due to Multiple Factors

Coffee Prices Today Coffee Prices Continue Rising Due to Multiple Factors ; Coffee prices are showing the signs of unprecedented rise on the back of shortfall in supply. In New York the prices rose to their highest level since 1997 and in London also they climbed to a 28-month high.

As of Jan. 27, the stocks observed by the New York Board of Trade fell to 1.64 million bags. Harvest in Antioquia, Colombia during the current season is also expected to fall owing to excessive rain fall. There is also no good news coming from Vietnam, as the exports are expected to record a short fall during the coming months.

“The market expects a reduced mid-crop in Colombia due to rain in 2010, and now rainstorms in Brazil that may impact production are being focused on,” said Keith Flury, an analyst with Rabobank in London. “With outlook tight, any potential reduction in the harvest is likely to result in notable price movements, and the increases in the last couple of sessions reflect this.”

So far as Arabica coffee is concerned, March delivery prices have gone up by 2.2 percent to $2.5035 a pound on ICE Futures U.S. in New York after they had touched $2.507, the highest level since June 1997. Robusta coffee also saw a rise of more than 2 percent when March delivery climbed $58 i.e. 2.7 percent, to $2,187 a metric ton on NYSE Liffe in London after reaching $2,204, the highest price since Sept. 25, 2008.