Robusta coffee stays close to 16-year high on ICE amid Red Sea tension

Robusta coffee futures on ICE held firm on Thursday, near the highest value in at least 16 years, as farmers in top producer Vietnam held back supply and shipping disruptions continued in the Red Sea, an important grain export route from Asia to Europe.

Coffee reached its peak on Wednesday (10)

March Robusta coffee closed down $12, or 0.4%, at $2,938 a metric ton, having peaked at $2,995 on Wednesday — the highest since these futures began trading in January 2008.

On Wednesday, the largest attack ever carried out by the Iran-backed Houthis took place against commercial ships sailing through the Red Sea on an important route between Europe and Asia, responsible for 15% of the world's maritime traffic.

The disruptions are causing long delays and increased freight rates, leading Vietnamese farmers to further hold back on sales and delay meeting pre-agreed sales.

This tactic is causing widespread fears of default, which would be very costly for traders and a driving force for future prices.

Source: Revista Cafeicultura