Coffee Declines on Signs of Ample Supplies; Cocoa, Sugar Gain

Coffee fell in London and New York on signs of ample supplies. Cocoa and sugar gained.

Arabica coffee bean inventories in warehouses monitored by the ICE Futures U.S. exchange in New York were little changed yesterday at 2.4 million bags, near the highest since May 2010. Exports from Brazil, the world’s largest producer, may rise 23 percent in October from a month earlier, according to Rio de Janeiro-based broker Flavour Coffee. World production may reach 160 million bags in the 2012-13 season, as output increases in Honduras and Mexico, INTL FCStone Inc. said Oct. 25.

“After the harvest from a high-yield year in Brazil had already put pressure on prices of arabica coffee, this effect is now being compounded by rising shipments from Central American countries,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in an e-mailed report today. “This is having a dampening effect on price performance.”

Robusta coffee for January delivery slid 1 percent to $1,995 a metric ton on NYSE Liffe in London by 10:39 a.m. Arabica coffee for December delivery fell 0.1 percent to $1.615 a pound on ICE.

Yesterday, coffee jumped 2.6 percent in New York on speculation that Sandy, the Atlantic Ocean superstorm, would damage coffee in warehouses in the northeast U.S. About 38 percent of U.S. green-coffee inventories were stored around the New York area, including New Jersey, the Green Coffee Association said on Oct. 15.

“Concerns that coffee warehouses could be flooded by the storm were partly behind the rise in coffee futures,” said David Maloni, the president of the American Restaurant Association, a Sarasota, Florida-based commodity researcher. “Assuming no major damage has occurred, we anticipate coffee prices to once again drift lower over the coming days,” he said in an e-mailed report today.

White, or refined, sugar for March delivery gained 0.3 percent to $525 a ton on NYSE Liffe. Raw sugar for March delivery rose 0.6 percent to 19.53 cents a pound on ICE.

Cocoa for March delivery advanced 0.7 percent to 1,543 pounds ($2,478) a ton in London. Cocoa for December delivery was up 1 percent to $2,374 a ton in New York.

To contact the reporter on this story: Whitney McFerron in London at wmcferron1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.