Arabica coffee hits 13-year high

LONDON, Nov 23 (Reuters): Arabica coffee futures rose to a fresh 13-year high on Friday, buoyed by concerns that next year's crop in Brazil may be smaller than earlier expected, while cocoa prices were also sharply higher.

March arabica coffee settled up 6.4 cents, or 2.2%, at $3.021 per lb after setting a 13-year high of $3.0390. It was the first time it surpassed $3 per lb since 2011.

Dealers said the run-up in prices had been fuelled by concerns about next year's crop in Brazil with reports that trees have relatively low numbers of the cherries which contain the coffee beans.

"We revise up our three-month target for arabica coffee to $3.10/lb, and note a significant upside risk skew to this forecast as supply from Brazil and Vietnam could still underperform," said Citi in a note to clients.

Dry weather earlier this year looks to have damaged the crop's potential in Brazil despiterains in October.

January robusta coffee rose by 4.1% at $4,985 a metric ton.