Coffee futures rise on evidence of shortage

The price of coffee futures gained on Friday as evidence of reduced exporting of the commodity was released. Futures for Arabica coffee declined for the first time in almost 20 sessions, according to Reuters.

Arabica coffee scheduled for December delivery gained 0.5 percent to reach $2.8825 per pound on ICE Futures U.S., after appreciating to as high as $2.885, its strongest value since June 2010, Bloomberg reports. Prices for the contract soared 20 percent, which was the largest gain in more than a year.

"Coffee continues to move higher on tight supplies," Boyd Cruel, a senior analyst at Vision Financial Markets, told the media outlet in a telephone interview.

He added that current harvests happening in Brazil, the largest producer of Arabica beans, and Vietnam will contribute to stockpiles, which will bring down prices.

The International Coffee Organization statistics indicated that coffee exports have dropped by almost 10 percent this year, to 7.35 million bags in July from 8.2 million bags the same time last year, according to DBR Markets.