27 Apr 2011 Coffee prices reach highest point since 1977
Speculative demand has pushed coffee prices up through the $3 a pound barrier, taking them to their highest level for over 30 years.
Arabica coffee prices for July delivery climbed to just over $3 a pound in New York – a price that has not been seen since a devastating frost took prices up to $3.34 in 1977.
Keith Flurry, senior commodity analyst at Rabobank, told BeverageDaily.com that prices broke the $3 mark in New York yesterday (20 April) despite “no new fundamental information in the last couple of days.”
Speculative demand is therefore thought to have played a role in the latest spike. Flurry said: “Much of the gains past $3.00 were technical with investors seeing strength in the market and buying, which pushes prices higher.”
A weakening dollar encouraged the speculative push by reducing the relative price of coffee for international investors.
Nevertheless, the market analyst said the market had moved initially on more fundamental information….