SOFTS-Robusta coffee edges up on short-term supply tightness
LONDON, Dec 29 (Reuters) – Robusta coffee futures were higher on Wednesday, edging up towards last week’s 10-year high, as supply chain issues increased the appetite for exchange stocks.
COFFEE
* March robusta coffee LRCc2 rose 0.3% to $2,351 a tonne by 1206 GMT. The benchmark second position climbed to a 10-year high of $2,381 last week.
* Dealers said supply chain issues, which included a shortage of container shipping capacity, had slowed the flow of robusta coffee from top producer Vietnam.
* Vietnam’s coffee exports in 2021 are expected to show a drop of 2.7% to 1.5 million tonnes, government data released on Wednesday showed.
* Valid ICE robusta stocks stood at 99,020 tonnes, as of Tuesday, down from 106,920 tonnes a month earlier.
* Dealers noted January’s premium to March LRC-1=R had been widening as traders holding short positions in the front month opted to cover rather than tender coffee. It was trading around $117 a tonne on Wednesday.
* No coffee was delivered on the January contract’s first tender day on Tuesday.
* March arabica coffee KCc1 rose 0.4% to $2.2645 per lb.
(Source: https://www.nasdaq.com/articles/softs-robusta-coffee-edges-up-on-short-term-supply-tightness )