Coffee Futures Caps Biggest Rally Since 2000

On February 7, 2014, in coffee futures news report, by Infinity Trading

February 6th, 2014

Coffee futures arabica posted the biggest rally in more than a decade as extreme weather threatened supplies from Indonesia to Brazil, the world’s biggest grower and exporter.

In Brazil, where drought is scorching crops from coffee to sugar, Sao Paulo and southwest Minas Gerais, the top arabica-producing state, will receive about one 10th of normal rains in the next 10 days, according to Donald Keeney, a senior meteorologist at MDA Weather Services in Gaithersburg, Maryland. In Indonesia, the second-largest exporter of robusta beans, heavy rains threaten crops in Java and parts of Sumatra, according to MDA.

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August 27th, 2013

Coffee futures robusta stockpiles are poised to slump to a 13-year low as torrential rain in Indonesia disrupts supply and consumers wait three more months before Vietnam’s new crop gets shipped.

Rain in the largest growing regions of Indonesia, the biggest producer behind Vietnam and Brazil, was as much as twice the 30-year average since April, MDA Weather Services says. Inventories certified by NYSE Liffe will tumble 34 percent to 52,000 metric tons by the end of 2013, the lowest since May 2000, the average of 10 trader estimates compiled by Bloomberg shows. Futures will gain 12 percent to $2,000 a ton over the same time, according to the median of seven forecasts.

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Coffee Gains Most in 10 Weeks

On July 15, 2013, in coffee futures news report, by Infinity Trading
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July 15th, 2013

Coffee futures arabica gained the most in 10 weeks as a rally in the Brazilian real eased concern that exporters will expand shipments at a time of global surplus.

The Brazilian real strengthened 1.1 percent to 2.242 per dollar at 12:54 p.m. after touching a four-year low of 2.803 on July 10. The currency tumbled 11 percent in the two months through July 12, increasing the incentive for coffee exporters to ship more beans and sending prices in New York down 17 percent over the period. The collapsed-exchange rate created incentive for exports sold in the U.S. currency.

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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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Arabica Coffee Gains as Roasters May Switch

On March 20, 2013, in coffee futures news report, by Infinity Trading
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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 Leaf Rust Threatens Central America

On January 25, 2013, in coffee futures news report, by Infinity Trading
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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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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 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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