By Debarati Roy and Chris Prentice -January 21, 2011 10:35 EST
Jan. 21 (Bloomberg) --Arabica coffee jumped the most in a month on signs that supplies may shrink in Colombia, the worlds second-largest producer. Sugar also gained.
Colombias National Federation of Coffee Growers said the harvest in Antioquia, the largest producing region, may drop below last years levels after excessive rainfall hampered plants. Prices jumped 77 percent in 2010 as adverse weather hurt global crops.
The fundamentals for coffee remain very bullish, because you dont have much good-quality coffee available, said Rodrigo Costa, the vice president of institutional sales at Newedge USA LLC in New York. Prices are very strong.
Arabica-coffee for March delivery added 6.75 cents, or 2.9 percent, to $2.3855 a pound at 10:30 a.m. on ICE Futures U.S. in New York. A close at that level would be the biggest jump since Dec. 21.
In London, robusta-coffee futures for March delivery climbed $32, or 1.5 percent, to $2,147 a metric ton on NYSE Liffe.