Via The Economic Times: Coffee has some steam left for another rally

A searing rally that lifted coffee prices to their highest in over four years may have the firepower behind it to hit even loftier levels, analysts said.

The catalyst for the surge has been projections that global coffee production will be outstripped by demand in %u201905-06, with output falling in leading producer Brazil and key grower Vietnam.

The world’s most popular hot beverage galloped past the key mark of 100 cents a pound in the New York Arabica coffee market in the last two weeks, and is at its highest since the middle of ‘00 when it was trading between 110 and 120 cents a pound.

The key March Arabica futures contract on the New York Board of Trade rose to a contract high on Monday of 107.4 cents per pound to mark the commodity’s highest in four and a half years.

It was only three years ago that prices had sunk to their lowest in decades in the face of a world-wide glut as coffee crops far outpaced consumption in the big coffee drinking countries.

One wonders if this will filter down to the growers, the plight of which was noted here.