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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April 27th, 2012

Coffee Futures – Buyers of coffee from Brazil, the world’s largest producer, are getting a bigger discount for beans as the new-crop harvest approaches, brokers said.

Fine cup beans for May and June shipment are trading at a discount of 8 cents a pound to the price on ICE Futures U.S. in New York, data from Rio de Janeiro-based broker Flavour Coffee showed. That compares with a 5-cent discount last week, according to the data.

Buyers of good cup beans for shipment in the same period are getting a discount of 15 cents a pound to the exchange price, up from 12 cents last week, Flavour Coffee said in a report e-mailed yesterday. Fine cup coffee is usually more expensive than good cup quality because of its taste profile.

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March 28th, 2012

Coffee futures may gain if the weather in Brazil, the world’s largest producer, remains dry “in coming months,” Goldman Sachs Group Inc. (GS) said.

The commodity has fallen 18 percent so far this year in New York as traders sold the beans in anticipation of a large Brazilian crop. Growers in the South American country may harvest a record 49 million to 52.3 million bags in the 2012-13 season starting in July as trees enter the higher-yielding half of a two-year cycle, exceeding the high of 48.5 million bags in 2002, the government estimates. A bag of coffee weighs 60 kilograms (132 pounds).

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March 20th, 2012

Coffee Futures – Macquarie Securities called time on the outperformance of London’s robusta coffee futures over New York’s arabica beans, which could yet rebound some 25% – catching out speculators.

While New York arabica coffee has in 2012 extended to 40% a decline in prices from a high last May, robusta futures have rallied, by some 15% so far this year.

The contrasting trend reflects in part expectations by the “incredibly forward-looking” arabica market of a better harvest from Brazil, the bean’s top producer, with 2012 being an “on” period in the country’s cycle of higher and lower crop years.

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