Coffee Rises to Record After Trader Cuts Brazil Crop Outlook
- Arabica futures climb to a record high in New York trading
- Roasters and cafes may have to pass on costs to consumers
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Coffee hit a record high in New York on mounting worries over a global supply crunch that have made it one of the year’s hottest commodities.
Major trader Volcafe Ltd. cut its outlook for production at world’s top supplier Brazil after a crop tour revealed the severity of an extended drought. The country is seen producing just 34.4 million bags of arabica, the variety that’s favored in specialty brews. That’s down by about 11 million bags from a September estimate, according to a presentation seen by Bloomberg News.