Arabica-Coffee Futures Approach Two-Year High

Arabica-coffee futures were nearing a more than two-year high Monday on concerns over

the size and quality of Brazil's crop following its hot and dry summer.

Arabica for delivery in May on ICE Futures U.S. was up 2.4% at $2.0155 a pound.

  Recent rains will likely not be enough to make up for a lack of rainfall earlier this year, said

Thiago Cazarini, the founder of coffee brokerage Cazarini Trading Company, based in Varginha,

Brazil.

  Brazil is the world's biggest coffee producer and exporter. As the source of around one-third of

the world's annual coffee production, the poor growing weather has fueled worries over a drop in

global supplies of the beans this year.

Since the start of the year, arabica-coffee prices are up 82%.

"The damage ... cannot be reversed," Mr. Cazarini said. "Production can be jeopardized."

A lack of moisture has stunted the growth of coffee cherries on some farms, Mr. Cazarini added.

  In other markets, futures of frozen orange-juice concentrate for May was down 0.1% at $1.5475 a

pound. Cocoa was up 0.2% at $2,987 a ton.