Javier Blas & Jenny Wiggins | London | October 14

FT - Coffee prices have surged to a 10-year high, pushed by fears that a drought in Brazil, the world’s largest producer, might halve its crop for the second year in a row and concerns about the Vietnamese harvest.

Néstor Osorio, executive director of the International Coffee Organisation, said the coffee market remained “tight, with low stocks” after recent poor harvests.

“Brazil is suffering from lack of rain.”

Mr Osorio added that there were concerns about coffee quality in Vietnam, the world’s second-largest producer.

Brazil’s coffee output fell 23 per cent this season to 32.6m bags, cutting global production to 114m bags, almost 6 per cent lower than the previous season.

The lower production comes as coffee enjoys a period of demand growth in developed countries, spurred by the consumption habits of younger people after strong marketing efforts by coffee chains such as Starbucks.

[Gold, Copper, Oil, Coffee: It's the same story... -Raja]