Tata Coffee gains on sharp spike in coffee prices
MUMBAI:A SharesA ofA Tata CoffeeA gained momentum in trade today following sharp spike inA coffee pricesA as drought inA Brazilthreatens production.
Coffee prices are at the highest in last one decade on reports that coffee growing regions in Brazil will get scanty rainfall after a dry patch in January.
Prices for Arabica coffee have surged 40 per cent in 2014 on concerns that production may fall as much as 30 per cent. The change in weather pattern in growing season has led to sharp rise in speculative positions in the market.
Arabica coffee for May delivery rose 8.8 per cent to settle at $1.5485 a pound in New York on ICE Futures US.
Exports of Indian coffee in January were up 38 per cent on strong global prices and less supply. Tata Coffee is likely to benefit from high commodity prices, said an analyst tracking the sector.
At 10:05 a.m.; Tata Coffee was at Rs 905, up 2.77 per cent, on the BSE. It touched a high of Rs 915.50 and a low of Rs 886 in trade today.
Adapted from http: //coffeemarketnews.com/