coffee futures news

coffee futures news

May 20th, 2016

Brazilian coffee production will soar by 13% this year, but remain short of all-time highs, with a drop in the drought-hit robusta crop offsetting a rise in arabica output to a record top.

In its first estimate for the 2016-17 crop, the US Department of Agriculture’s Brasilia bureau pegged it at 55.95m bags.

That would represent an increase of more than 6.5m bags year on year, but fall short of the record 57.6m-bag harvest reaped four years ago.

This increase is forecast being led by arabica beans, for which the bureau forecast output soaring from 36.10m bags last year to 43.85m bags  – eclipsing the highs of 42.1m bags set in 2012.

Arabica yields are expected to increase due to “good blossoming between September and November 2015 in all producing regions and overall good weather conditions during fruit setting and development”, the bureau said in a report.

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coffee futures news

coffee futures news

May 17th, 2016

Since drought concerns first emerged in February this year, London robusta coffee prices have rallied by over 25%.

Prices are currently trading at an eight-month high of $1679 per tonne, as drought fears have cut estimates of the 2016/17 crop production from top robusta producing countries including Vietnam, Brazil, Indonesia and, more recently, India.

Coffee Futures: Eyes on skies

With the rainfall season approaching in Vietnam, the country’s Meteorology and Hydrology Department’s (GDMH) in its May statement forecast 20 – 40% lower rainfall in the main producing areas of the South and the Central Highlands.

Current rainfall has been scattered and this will lend little support to production, “so drought and water conditions won’t improve much” in the short-term, according to GDMH.

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coffee futures news

coffee futures news

February 25, 2015

Coffee Futures — If you think swings in the crude market have been bad, take a look at coffee.

After surging as much as 11 percent to 2015’s high in mid-January, rains in Brazil improved crop prospects and prices are now at the lowest in a year. Bull-to-bear market gyrations spurred by changing weather in the country, the world’s biggest producer and exporter, drove coffee to be the most-volatile commodity in the past year.

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cocoa futures brokers

cocoa futures brokers

February 16th, 2015

Arabica coffee futures will rebound, spurred by a market squeeze last seen when prices hit 300 cents a pound, with cocoa futures poised to gain on a fall in stocks to “fairly precarious levels”, Olam International boss Sunny Verghese said.

Mr Verghese, the Olam chief executive and founder, and one of the best-known figures in soft commodities, said that the Singapore-based trading house had cut by 2m bags to 49m bags its forecast for Brazil’s coffee production this year.

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coffee futures

coffee futures

June 10, 2014

Coffee output in Vietnam, the top grower of robusta beans used by Nestle SA and Mondelez International Inc., will probably decline in the year starting October as yields shrink after a record crop.

The harvest may contract by 4 percent to 1.64 million metric tons from 1.71 million tons a year earlier, according to the median of 12 trader and analyst estimates compiled by Bloomberg. Unsold inventories with farmers were equivalent to 19 percent of production by the end of May, from 20 percent at the same time last year, the survey showed.

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coffee futures prices

coffee futures investing

April 24th, 2014

Brazil’s drought made arabica coffee this year’s best-performing commodity. Now, farmers are facing a downpour that is once more threatening crops.

An unprecedented three months with almost no moisture eroded crop prospects for the world’s largest grower, signaling the first global shortages in five years, according to Marex Spectron, a brokerage. As farmers harvest the bulk of the crop from May through July, forecaster Somar Meteorologia predicts an El Nino weather pattern will drop enough moisture in the South American country to cause more damage.

Hugo Villas-Boas estimates trees on 400 acres he owns near Guaxupe, in the state of Minas Gerais, will yield as much as 30 percent less because of the dry spell. The 64-year-old farmer said mid-year rains will mean “worse losses.” Prices that almost doubled this year to a 26-month high may surge 20 percent further by the end of December to $2.54 a pound, a Bloomberg survey of 19 analysts showed, boosting costs for buyers including Nestle SA.

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coffee options

coffee futures brokers

April 22nd, 2014

Coffee futures – arabica, the benchmark for high-quality beans, have nearly doubled this year on the ICE Futures U.S. exchange, amid the worst drought in decades for top-grower Brazil.

Prices for arabica beans, typically used in gourmet blends and prized for their mild flavor, have surged 95% through Tuesday morning’s intraday high of $2.1570 a pound, a 26-month high for the most-actively traded contract.

But that rally in prices has been slow to drip down to consumers. During the four weeks ended March 23, the average price per unit of ground coffee in the U.S. was actually down 30 cents from a year ago at $6.26, according to IRI, a Chicago-based market research firm. Whole coffee beans dropped 47 cents per unit during the same time period to $8.65, IRI data shows.

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February 18th, 2014

Coffee futures jumped the most in a decade, soybeans reached the highest since December and sugar rallied as drought scorches fields in Brazil, the world’s biggest exporter of the crops.

The Standard & Poor’s GSCI Agriculture Index of eight commodities capped a seventh straight gain yesterday, the longest streak since 2011. Rain in growing regions will be 75 percent less than normal in the next five days, deepening a moisture deficit after the driest January since 1954, David Streit, an agricultural meteorologist at Commodity Weather Group, said in a phone interview from Bethesda, Maryland.

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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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coffee brokers

Coffee futures

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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