Coffee prices rocket to multi-month peaks

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Coffee prices soared Wednesday on worries over tight supplies, hitting a 27-month pinnacle in New York and a 17-month high point in London.

In earlier deals on the New York Board of Trade (NYBOT), Arabica for September jumped to 162.95 US cents a pound -- striking a level that was last seen in March 2008.

In trading on LIFFE -- London's futures exchange -- Robusta for delivery in September rallied to 1,595 dollars a tonne, reaching a level last witnessed in March 2009.

"The rise in coffee prices over the past few days has largely been down to concerns about poor crop harvests in Vietnam and Central America," said CMC Markets analyst Michael Hewson in London.

"The market also has concerns about the forthcoming harvest in Brazil which could cause a shortfall in global supplies."

He added: "The last time they were at these heady levels was in 2008, just prior to the commodity price crash, and the pre-credit crunch sell-off."

© 2010 AFP

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