Arabica Coffee Hits Highest Since February on Supply Concerns

Coffee futures topped $4 a pound and touched the highest since February as an extended price rally driven by worries over tight supplies and trade tensions forced traders to exit the market.

Prices of arabica, the variety favored by chains such as Starbucks Corp. for specialty brews, climbed as much as 6.2% on Monday to $4.21 a pound. Futures have jumped roughly 50% since early August amid dryness in top grower Brazil, US tariffs on supplies from the South American nation and smaller inventories.

The surge in prices has put increasing financial pressure on coffee industry players including cooperatives ...