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Rich Asplund

Robusta Coffee Soars to Record as Drought in Vietnam Curbs Coffee Production

Vietnam Ice Drought Brazil Rabobank the International Coffee Organization the USDA FAS

May arabica coffee (KCK24) this morning is up +5.80 (+2.93%), and May ICE robusta coffee (RMK24) is up +165 (+4.50%).

Coffee prices this morning are sharply higher for a second day, with arabica posting a 3-1/2 month high and robusta posting a new record high. Concern that excessive dryness in Vietnam will limit the country's robusta coffee production is pushing robusta prices sharply higher and providing carryover support to arabica coffee prices. Coffee importer DRWakefield said today that "weather conditions in Vietnam are not encouraging, and there are concerns over a possible water shortage for irrigation, which may hurt the coffee output for next season."

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