Financial Times FT.com

Beverages markets near boiling point

By Javier Blas and Chris Flood

Published: February 18 2008 19:00 | Last updated: February 18 2008 19:05

Coffee, cocoa and tea markets are nearing boiling point, with prices at multi-year peaks as supportive demand and supply conditions and fears about food-inflation have fuelled high levels of speculative buying.

“Tight fundamentals tend to exacerbate speculative investment,” says Nestor Osorio, executive director of the International Coffee Organisation, who expects coffee prices to rise this year.

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