Robusta Coffee Near Decade High on Worries About Tight Supply

(Bloomberg) -- Robusta coffee traded near the highest in a decade, buoyed by worries about tight global supplies and shipping bottlenecks.

Most-active futures rose as much as 1% to approach a peak set last week, before paring some of the gain. Traders are keeping an eye on the harvest in top robusta producer Vietnam as concerns linger about a drop in output amid a fertilizer crunch. High freight costs and longer shipping times due to the pandemic have aided the rally, Rabobank analyst Carlos Mera said.

Read More: Coffee’s Shipping Experiment Seeks to Leapfrog Container Chaos

Robusta coffee was last up 0.3% at $2,323 a ton in London. Arabica coffee also edged higher in New York. In other soft commodities, raw sugar and cocoa futures extended gains in New York.

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