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

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

June 2nd, 2014

Brazil coffee growers may face less severe losses than officially estimated as the first harvested beans indicate that rains last month reduced the impact of the worst drought in 50 years, the agriculture minister said.

Brazil’s crop forecasting agency Conab reduced last month its estimate for this year’s coffee output to 44.6 million bags, from a January forecast of 46.5 million to 50.2 million bags. The forecast may be revised by the end of the harvest, Minister Neri Geller said in interview yesterday. Each bag weighs 60 kilograms (132 pounds).

“I’m not going to give figures, but we expect that the output can be higher than that,” Geller said in an interview from his office in Brasilia. “And growers manage to take good care of the trees because the prices have gone up, so we will have a bumper crop for next year.”

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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 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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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 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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Coffee Gains Most in 10 Weeks

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

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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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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Arabica Coffee Gains as Roasters May Switch

On March 20, 2013, in coffee futures news report, by Infinity Trading
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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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