Coffee Climbs From One-Week Low on Tight Supply Concerns

(Bloomberg) -- Arabica coffee rebounded from the lowest close in more than a week amid concerns about tighter supplies in key producers in the Americas.

While futures eased in the previous three days, the market has been supported in recent weeks by drought in Brazil and falling stockpiles of green coffee in the U.S. Adverse weather may also lower bean shipments from Central America and Colombia in the 2020-21 season, according to the Hightower Report.

“The market continues to find support from supply issues,” the Hightower Report said. Still, stricter Covid-19 measures that threaten out-of-home demand will remain a concern, it said.

Arabica coffee for March delivery rose 1.1% to $1.256 a pound in New York. Robusta was little changed in London. In other soft commodities, cocoa and sugar advanced in New York.

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