Coffee Shortage Catapults Robusta Spread to Record High

There’s a shortage of robusta coffee, and it’s showing in the futures market. The July contract for the variety used in instant coffee costs $35 a metric ton more than beans for September delivery following poor crops in top producers Vietnam and Brazil. The spread, which hit an intraday record last week, jumped amid expectations a single buyer will tap a large part of exchange stockpiles at a time Vietnam has already sold most of its beans, Rodrigo Costa, a director at Comexim in the U.S., said in a report for Archer Consulting.

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