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coffee futures rise
May 2nd, 2013
Coffee futures robusta rebounded in London on speculation exchange data due later today will show stockpiles declined as beans from producing countries are trading at a premium. Sugar fell and cocoa swung between gains and losses.
Robusta inventories with a valid grading certificate in warehouses monitored by NYSE Liffe were 126,250 metric tons on April 15. The exchange data is due today and may show that inventories dropped in the two weeks to April 29. Coffee from Vietnam, the world’s top producer of the robusta variety, and third-ranking Indonesia was trading at a premium of $90 a ton to NYSE Liffe last week, according to Volcafe, the Winterthur, Switzerland-based unit of ED&F Man Holdings Ltd.
“There’s speculation that certified stocks have been sold to the industry,” Jerome Jourquin, head of agricultural commodity derivatives at Aurel BGC in Paris, said by e-mail today, referring to coffee roasters.
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coffee futures climb
March 20th, 2013
Coffee Futures – Arabica coffee climbed for the first time in eight days in New York on speculation roasters may add more of the beans favored by Starbucks Corp. (SBUX) to blends. Sugar and cocoa also rose.
Arabica futures touched $1.3255 a pound yesterday, the lowest since June 2010. The commodity lost 37 percent last year, making it the worst performer in the Standard & Poor’s GSCI gauge of 24 raw materials. Robusta beans, used in instant coffee, climbed 12 percent this year after advancing 6.3 percent in 2012. The premium arabica commands over robusta slid to 35.4 cents a pound yesterday, the lowest since December 2008. That may attract roasters to arabica beans.
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March 11th, 2013
Coffee Futures – The coffee harvest in Vietnam, the biggest grower of robusta beans used by Nestle SA (NESN) in instant drinks, may decline for second year because of drought in the main growing regions, according to a producers’ group.
Output may drop 30 percent in 2013-2014, Luong Van Tu, chairman of the Vietnam Coffee & Cocoa Association, or Vicofa, said yesterday, without giving a specific forecast. Production fell 25 percent in 2012-2013 from 1.5 million tons a year earlier, he said. A Bloomberg survey published on March 7 estimated the 2012-2013 crop at 1.43 million tons.
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coffee futures and options
January 25th, 2013
Coffee Futures – Coffee output in Central America and Mexico may tumble as a disease affecting foliage spreads, prompting governments to take emergency measures to protect farms responsible for 14 percent of global production.
Guatemala, Central America’s second-biggest coffee grower, may lose a third of its crop because of leaf rust, President Otto Perez Molina said yesterday in Davos, Switzerland. The crop in Costa Rica may be 30 percent to 40 percent smaller because of the fungus, President Laura Chinchilla said in a separate interview in Davos. Coffee exports from Honduras, the region’s biggest grower, will be down 767,000 bags due to leaf rust, also called roya, the Honduras Coffee Institute said.
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coffee futures fall
December 28th, 2012
Coffee Futures – Robusta coffee fell for the first time in seven sessions in London as exchange-monitored stockpiles advanced and exports from top grower Vietnam are set to jump this year. Cocoa advanced.
Robusta coffee stockpiles with a valid grading certificate in warehouses monitored by NYSE Liffe were 106,540 metric tons on Dec. 24, up 1.3 percent from two weeks earlier, according to data on the exchange’s website today. Vietnamese coffee exports will be 201,000 tons this month, the country’s Ministry of Agriculture and Rural Development estimates. Shipments for the year will total 1.76 million tons, an increase of 40 percent from a year earlier, it forecasts.
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Dec 19, 2012
Coffee Futures – Robusta coffee gained for a second day in London, before the expiry of the January options contract later today, as demand continues to be strong and stockpiles are set to keep on falling. Sugar retreated.
Robusta coffee inventories with a valid grading certificate in warehouses monitored by NYSE Liffe were 105,140 metric tons on Dec. 10, down 3.1 percent from two weeks earlier, according to data on the exchange’s website. Stockpiles have fallen 75 percent since reaching an all-time high of 417,420 tons in July 2011. The January robusta options contract expires today, with investors holding 4,932 contracts giving them the right to sell the futures at $1,900 a ton, the most active January put-option, and 1,914 contracts giving them the right to buy at this level.
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November 27th, 2012
Coffee futures have been trending lower for nearly two years after prices reached a record high above $3 in early 2011. Now, it is a matter of too many people on one side of the market and a market that might have moved too far, too fast.
A case can be made that the fundamentals in the coffee market aren’t exactly great. However, that might be more than reflected in the price of coffee. Brazil is the main area to watch, as they had a very large crop last season. Their crop is going to be smaller this season. Colombia is also going to have a smaller crop this year. Coffee is trading around $1.50 and the downside should be limited unless demand falls off a cliff and the weather is perfect.
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November 8th, 2012
Coffee Futures – Coffee farmers in Vietnam, the world’s biggest grower of the robusta variety used by Nestle SA (NESN) in instant drinks, have harvested more beans than last year because of an early start and favorable weather.
Growers reaped about 19 percent of the crop, or 280,000 metric tons, the median of eight trader and shipper estimates compiled by Bloomberg shows. The harvest is set to drop 12 percent to 1.45 million tons from 1.64 million tons last season, while 175,000 tons have been sold, the survey shows.
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October 23, 2012
Arabica coffee futures on Intercontinental Exchange climbed more than 1 percent on Monday, with the market extending its rebound from last week’s six-week low on short-covering although the upside appeared to be capped by bearish fundamentals.
Cocoa futures on ICE also rose, touching a three-week high with dealers concerned about increasing violence and heavy rains in top grower Ivory Coast, while raw sugar fell, giving back the previous day’s gains in thin volume. December arabica futures on ICE settled up 2.85 cents, or 1.8 percent, at $1.6450 per lb. The contract hit $1.5715 on Thursday, the lowest level for the front month since September 6.
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October 11th, 2012
Coffee Futures – Coffee production in Vietnam, the world’s biggest grower of the robusta variety used by Nestle SA (NESN) in instant drinks, is poised to decline from a record as dry weather cuts yields, bolstering prices.
The harvest may drop 9.4 percent to 1.45 million metric tons in the season that started Oct. 1 from an all-time high of 1.6 million tons in 2011-2012, according to the median of eight trader and shipper estimates compiled by Bloomberg. That’s less than the 26 million bags (1.56 million tons) estimated by Volcafe Ltd. A bag weighs 132 pounds.
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