Coffee prices are at a 12 year high in New York due to the weak dollar. The US dollar dropped against the six other major currencies, even after gaining in the last five sessions.
The Reuters/Jefferies CRB Index of 19 raw materials gained as much as 0.5 percent before a plunge in wheat prices dragged the index down. Coffee climbed 6.1 percent last week on speculation that too much rain will hurt crops in Brazil and Colombia, the world’s largest producers of arabica beans. “The lower dollar is giving coffee a little bit of bid,” said Hector Galvan, a senior trading adviser at RJO Futures in Chicago. “There’s also some speculative buying” following last week’s increases, he said.
Bloomberg reported that Coffee has gained 33% this year in te global market.
