Futures climb 1.6% in London, gaining for third straight day
Covid lockdown set to “amp up” supply side fears: Sucden
By Khadija Kothia
Robusta coffee continued to outpace arabica beans as stricter Covid-19 restrictions in Vietnam threatened to tighten supplies.
Futures rose 1.6% to $1,942 a ton in London, advancing for a third day. The biggest robusta producer is Vietnam, where supply-chain issues are curbing shipments.
Vietnam deployed soldiers onto the streets of Ho Chi Minh City to enforce a strict coronavirus lockdown. That’s set to “amp up” supply side fears as citizens are prevented from leaving their homes, Sucden’s Soft Commodities Broker Alex Boughton said in a report.
Arabica coffee rose 0.4% as Somar Meteorologia’s latest weather report forecast beneficial rains but also high temperatures for growing regions in Brazil.
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