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Arabica Coffee Rises to 12-Year High as Inventories Drop for 20th Month
Coffee prices jumped to a 12-year high as inventories dwindled for the 20th straight month. Cocoa also gained.
Inventories of arabica coffee in warehouses monitored by ICE Futures U.S. have dropped every month since November 2008, falling 54 percent. Based on price-chart analysis, futures may extend the rally to the highest level since August 1997, said Jim Stellakis, an independent analyst, and Robin Rosenberg, a futures and options strategist at PFG Best.
“We’re really just running down existing stocks” said Kona Haque, an analyst at Macquarie Group Ltd. in London.
Arabica-coffee futures for September delivery rose 3.25 cents, or 1.9 percent, to close at $1.763 a pound at 2 p.m. on ICE in New York. Earlier, the price reached $1.7875, the highest level for a most-active contract since Feb. 6, 1998. The commodity jumped 6.2 percent this week.
In 2010, coffee has gained 30 percent, the most among 19 raw materials in the Reuters/Jefferies CRB Index.
Coffee futures may jump as much as 13 percent to $2, Stellakis and Rosenberg said. That would mark the highest level since Aug. 11, 1997.
On the Liffe exchange in London, robusta-coffee futures for September delivery gained $63, or 3.6 percent, to close at $1,810 a metric ton at 5:30 p.m. local time.
Stockpiles of robusta, grown mostly in Vietnam, were 211,930 tons as of July 26, down 39 percent from the end of 2009, according to figures from NYSE Liffe in London.
Cocoa futures for September delivery climbed $45, or 1.5 percent, to settle at $3,091 a ton at 12:02 p.m. in New York. The price climbed 4.2 percent this week and 5 percent in June.
Cocoa futures for September delivery fell 13 pounds, or 0.6 percent, to settle at 2,273 pounds ($3,567) a ton at 4:50 p.m. in London.
To contact the reporters on this story: Yi Tian in New York at ytian8@bloomberg.net; Claudia Carpenter in London at ccarpenter2@bloomberg.net
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