Coffee Climbs on Brazil Harvest; Sugar Declines; Cocoa Advances
Coffee rose to a five-week high in New York after Goldman Sachs Group Inc. forecast price support amid lower output in Brazil, the world’s largest grower. Sugar fell, capping the longest slide in two years, and cocoa gained.
Brazil’s coffee harvest will be 13 percent smaller than last year because of a cyclical drop, the Agriculture Ministry said in January. Rabobank International raised its arabica forecast for the rest of this year, citing a deficit. The price has more than doubled in the past 12 months.
“With demand expected to continue to grow, led by emerging markets, the outlook for lower 2011-12 production on Brazil’s off-year of the arabica plant two-year cycle will likely support prices in 2011,” Damien Courvalin, an analyst at Goldman Sachs in New York, said in a report.
Arabica coffee for July delivery advanced 5.95 cents, or 2.1 percent, to settle at $2.911 a pound by 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached $2.9165, the highest for a most-active contract since March 10.
This week, coffee jumped 5.9 percent, the most in two months. On March 9, the commodity climbed to $2.9665, the highest since May 1997.
Robusta-coffee for July delivery fell $1 to $2,468 a metric ton on NYSE Liffe in London.
Cocoa futures for July delivery rose $30, or 1 percent, to $3,157 a ton in New York, capping a five-day rally. This week, the price gained 5.8 percent, the most in three months.
In London, cocoa for July delivery gained 19 pounds, or 1 percent, to 1,979 pounds ($3,230) a ton.
Raw-sugar futures for July delivery declined 0.09 cent, or 0.4 percent, to 22.97 cents a pound in New York. The price dropped for the sixth straight session, the longest slide since late March 2009. The commodity, down 7.7 percent this week, has tumbled 28 percent this year, the biggest drop among 19 raw materials in the Thomson Reuters/Jefferies CRB Index.
In London, refined-sugar futures for August delivery slumped $5.70, or 0.9 percent, to $632.70 a ton.
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