Coffee Falls to Four-Week Low on Brazil Supply; Cotton Advances
Coffee futures fell to a four-week low in New York on speculation that rain in Brazil, the world’s largest producer and exporter, will improve harvest prospects. Orange juice also slid, while cotton gained.
Showers may drop as much as 0.75 inch (1.9 centimeter) of rain on coffee-growing areas of Brazil by Oct. 13, Telvent DTN said today in a report. The price on Oct. 3 reached the highest since July 24 on concern that dry weather would hurt flowers on coffee trees, reducing the size of next year’s harvest.
“The favorable weather is helping the crop,” John Caruso, a senior broker at R.J. O’Brien in Chicago, said in an telephone interview.
Arabica coffee for December delivery dropped 2.2 percent to settle at $1.653 a pound at 2 p.m. on ICE Futures U.S. in New York, after reaching $1.641, the lowest for a most-active contract since Sept. 10.
Brazil’s exports fell 24 percent in September from a year earlier, partly because a strike by port officials delayed shipments, the council of coffee exporters said yesterday. Stockpiles at warehouses monitored by ICE rose
“After the nice run we had last week, producers are now selling the market,” Caruso said. “Traders expect the exports to pick-up steam.”
Orange-juice futures for November delivery slid 0.7 percent to $1.12 a pound in New York, the fifth consecutive decline.
Cotton futures for December delivery increased 0.1 percent to 71.84 cents a pound on ICE, adding to yesterday’s 0.4 percent gain.
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