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: Coffee Slumps to Two-Week Low on Greater Output in Brazil; Cocoa Gains Jul 6th, 2010 Coffee futures fell to the lowest level in two weeks on reports of a bumper crop in Brazil, the world’s largest producer. Cocoa was higher. Output in Brazil may total 47 million bags this year, up 19 percent from a year earlier, as trees enter the higher-yielding phase of a two-year cycle, the Agriculture Ministry has said. No frost is forecast for coffee-producing areas through July 9, the government’s weather agency said on its website. “Fundamentals are bearish,” said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. “The Brazilian crop is expected to be big, and there’s no news, like threat of freezing temperatures, to push prices up. Coffee has lost its upside momentum.” Coffee futures for September delivery lost 3.65 cents, or 2.2 percent, to $1.6065 a pound at 11:02 a.m. on ICE Futures U.S. in New York. Earlier, the price reached $158.60, the lowest level for a most-active contract since June 22. Before today, the commodity surged 21 percent in the past month. On London’s Liffe exchange, robusta-coffee futures for September delivery dropped $45, or 2.6 percent, to $1,665 a metric ton, after touching $1,643, the lowest price since June 24. Before today, robusta jumped 31 percent in the past month. Coffee arabica, a variety grown in Brazil and brewed by companies such as Starbucks Corp., may fall as low as $1.50 a pound by the end of the week if it closes below $1.60 today, Cruel said. Coffee Futures Further Drop PredictedRobusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa. Each bag weighs 132 pounds, or 60 kilograms.“On the way up, there was a lot of panic buying and short- covering,” Angus Kerr, owner of trading company Coffee ag in Cobham, England, said by telephone, referring to purchases that closed bets on falling prices. “The market has further to come down before it consolidates.” Cocoa for September delivery added $22, or 0.7 percent, to $2,993 a ton in New York. On London’s Liffe, cocoa futures for September delivery increased 4 pounds, or 0.2 percent, to 2,404 pounds ($3,658) a ton. - Yi Tian in New York and M. Shankar in London at Bloomberg. Click here for your Free Coffee Futures Trading eGuide |
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