Coffee Supply Crunch Spurs Rally After Folgers Cut: Commodities
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Coffee’s biggest slump in three years may be ending as weather damages crops from Colombia to Indonesia, reducing U.S. inventories to the lowest since 2000 just as Kraft Foods Inc. and J.M. Smucker Co. cut prices.
Stockpiles in warehouses monitored by ICE Futures U.S. fell 16 percent since December, declining for a fourth year, exchange data show. Arabica-coffee futures, already poised for the highest annual average price on record, may rise 15 percent to $2.71 a pound by March, according to the average estimate of 13 traders and analysts surveyed by Bloomberg.