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Coffee’s Surge to 2-Year High Spurs Worries About Sales Default

  • Price jumped as speculators turned bullish amid tighter supply
  • The fast rally has fueled speculation of contract defaults
Operations At Intelligentsia Coffee In Chicago
Photographer: Daniel Acker/Bloomberg

Coffee’s breathtaking rally is sparking concerns that some farmers may default on sales made at lower prices.

Tightening supplies have helped prices recover from the lowest in more than a decade, giving some relief to many farmers who had been producing at a loss. But that has also led to worries that growers in places like Colombia may not honor sales agreed before the recent rally.