
Coffee Gains in Tokyo on Supply Threat: World's Biggest Mover
March 7 (Bloomberg) -- Robusta coffee futures prices in Tokyo rose as much as 7.7 percent, the biggest fluctuation of any commodity market today, as drought threatened to cut the crop in Vietnam, the biggest supplier of Robusta beans.
Prices for Robusta, the variety used by processors such as Nestle SA and Procter & Gamble Co. to make instant coffee, have surged 27 percent this year to the highest in more than four years on the Tokyo Grain Exchange. Japan was the world's biggest coffee importer after the U.S. and Germany in 2003, according to the United Nations.
``Prices are being pushed up on expectation supplies will be tight following the drought in Vietnam,'' said Akio Shibata, a deputy director at Marubeni Research Institute in Tokyo. A decline in production in Brazil ``will aggravate the situation.''....more...