COMMODITY PRICE INDEX

COMMODITY PRICE INDEX Coffee prices rose by nearly 7% in New York on January 20th as growing fears of a shortage of arabica beans, ahead of the new Brazilian crop in May, encouraged buyers. Supplies in Brazil are tight because of strong domestic demand and a small crop last year. Output around the world has been hit by El Niño, which has brought drought to Colombia and Indonesia, and floods to Mexico, Central America and Kenya. Colombia's growers' federation says its supplies of coffee for export in February are more than 40% below average. The country also faces a nationwide lorry drivers' strike. Indonesia's output of robusta beans this year is expected to be down by 30%.