Coffee Futures Special Report
CALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741
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Coffee Futures Special ReportCALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741 |
Coffee Futures Rise On Concern Frost May Harm Brazil's Crop May 8th, 2008Coffee futures rose the most in three weeks on speculation a frost may harm the crop in Brazil, the world's biggest grower. The threat of a frost generally runs from the end of May to mid-August in Brazil's growing region, said David Streit, a meteorologist for CropCast Services Inc. in Rockville, Maryland. Temperatures in Minas Gerais, Brazil's largest grower, may be below normal the next two weeks, he said. ``Historical patterns suggest the market could sustain seasonal strength into mid-to-late May,'' Dan Vaught, an analyst at Wachovia Securities LLC in St. Louis, said in a report. ``Industry concerns about a Brazilian frost, or at the least a frost scare, probably play a role in that strength.'' Coffee futures for July delivery rose 3.45 cents, or 2.6 percent, to $1.3455 a pound on ICE Futures U.S., formerly the New York Board of Trade. That marked the biggest percentage gain since April 17. The temperature may touch 45 degrees Fahrenheit (7 degrees Celsius) in Minas Gerais in the next couple of weeks, colder than the normal low of 55 degrees during the period, Streit said. There's a 65 percent to 70 percent chance that cold weather will continue into the last week of May, he said. Since May 1, most-active futures have been traded at $1.288 to $1.355 a pound. Coffee is ``range bound'' with a larger Brazil crop keeping futures from rising too far and reduced sales from producers, worried that their costs will increase, setting the floor for the market, said Raymond Keane, a coffee trader at Balzac Bros. & Co. in Charleston, South Carolina. Production Costs``People are being cautious because of uncertainty,'' he said. ``The dollar and oil prices are making it difficult to put a number on what it's going to cost to produce coffee. There is a lack of selling.'' Futures have fallen 22 percent from a 10-year high of $1.719 on Feb. 29, partly on forecasts for increased Brazilian production. Coffee growers will harvest 45.5 million bags of the beans this year, more than a January forecast of 41.3 million to 44.2 million bags, the Agriculture Ministry's stockpiles agency said today in a statement. Output will rise from 33.7 million bags in 2007. A bag weighs 60 kilograms (132 pounds). - Shruti Date Singh in Chicago at Bloomberg. Click here for your Free Coffee Futures Trading eGuide |
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