Arabica coffee rose to a 13-year high in New York on concern that output may fall next year in Brazil and Colombia, the world’s two biggest growers of the variety. Robusta coffee reached a two-year high in London. Brazilian coffee output may fall next year as trees enter the lower-yielding half of a two-year cycle, the Agriculture Ministry said Sept. 9. Colombia said Oct. 15 a fungus that damages plants may reduce output next year, a day after growers cut the forecast for this year’s harvest. “There are still big concerns” for South American crops, said Kona Haque, a London-based analyst at Macquarie Group Ltd. “Every time you hear of any supply downgrade or production disruption, that’s what’s causing prices to shoot up even more, because there’s just no room for error. It’s going to remain a volatile market.” Arabica for December delivery rose 5.35 cents, or 2.7 percent, to $2.0210 a pound on ICE Futures U.S. at 12:51 p.m. London time. Prices reached $2.0315, the highest intraday level since Aug. 11, 1997. Haque also pointed to reduced bean inventories. Coffee stockpiles monitored by the New York Board of Trade came to 1.84 million bags as of Oct. 19, down 40 percent this year. Global arabica demand will exceed supply by 1.3 million bags in the year starting Oct.1, Macquarie said last week. The robusta deficit will be by 1.6 million bags, according to the report. That matches the year-earlier shortfall. A bag weighs 132 pounds, or 60 kilograms. Robusta gained as the government of Vietnam, the world’s biggest producer of the variety, said floods and heavy rain in central provinces left 54 people dead, 44 injured and 20 missing. Typhoon Megi, which left 19 people dead in the Philippines, moved into the South China Sea as it headed for the Chinese coast. Exports From Vietnam “A lot of people are seeing potential for lower Vietnamese exports,” said Doug Whitehead, an analyst at Rabobank International in London. “The super-typhoon Megi could also be inducing some pre-emptive buying in robusta.” Robusta for January delivery jumped $52, or 2.8 percent, to $1,892 a metric ton on NYSE Liffe. Prices reached $1,910, the highest level since Oct. 14, 2008. “Concern over delays to the new crop should rainfall persist” helped to lift prices, along with the typhoon, Ralph Hawes, a coffee trader with Sucden Financial Ltd. in London, wrote in a note yesterday. Robusta, used in instant coffee, is harvested mostly in Asia and parts of Africa. Arabica, grown mainly in Latin America, is favored for specialty beverages made by Starbucks Corp. and other coffee chains. Cocoa Gains Cocoa in London gained after the pound fell to a six-month low against the euro, boosting the appeal of the raw material. The pound fell against all 16 of its most-traded peers after Bank of England minutes showed policy makers may be leaning toward more bond purchases, known as quantitative easing, to shore up the recovery. “I don’t see it as anything to do with supply and demand fundamentals, it’s much more a reflection of currency movements,” said Gary Mead, a London-based analyst at VM Group. Cocoa for December delivery climbed 37 pounds, or 2 percent, to 1,897 pounds ($2,989) a ton in London. The chocolate ingredient for December delivery rose $36, or 1.3 percent, to $2,813 a ton in New York. White, or refined, sugar for December delivery fell 0.2 percent to $729.10 a ton in London. Raw sugar for March delivery gained 0.7 percent to 29 cents a pound on ICE Futures U.S. in New York. To contact the reporter on this story: Chris Kay in London at ckay5@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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