Coffee Slides on Rising Stockpiles, Vietnam Exports; Sugar Falls
Robusta coffee fell for a second day in London as bean stockpiles climbed and shipments from top producer Vietnam continued to gain. Sugar and cocoa retreated.
Robusta coffee inventories with a valid grading certificate in warehouses monitored by NYSE Liffe rose 0.6 percent as of Jan. 21 from two weeks earlier, according to the exchange. Traders had expected a “small draw,” broker Sucden Financial Ltd. in London said in a report e-mailed yesterday. Coffee exports from Vietnam may climb 71 percent in January from a year earlier, the Ministry of Agriculture and Rural Development estimated.
“Producers in Vietnam are struggling to keep product off the market,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, wrote in a report e-mailed yesterday.
Robusta coffee for March delivery was down 0.7 percent at $1,932 a ton by 10:33 a.m. in London. Arabica coffee for March delivery was 0.4 percent higher at $1.472 a pound on ICE Futures U.S. in New York, after dropping 2.6 percent yesterday.
Robusta coffee stockpiles were 105,530 tons on Jan. 21, exchange data yesterday showed. Coffee shipments from Vietnam may to rise to 191,000 tons, the ministry said.
Coffee output in Central America and Mexico may tumble as a disease affecting foliage spreads. Guatemala, the region’s second-biggest grower, may lose a third of its crop because of leaf rust, President Otto Perez Molina said yesterday in Davos, Switzerland. The crop in Costa Rica may be 30 percent to 40 percent smaller because of the fungus, President Laura Chinchilla said in a separate interview.
“Expectation of a high coffee crop in Brazil outweighs production losses in Central America,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report e- mailed today. Still, the fungus infestation “should put paid to any further price slide.”
Cocoa for March delivery was down 0.2 percent at 1,435 pounds ($2,264) a ton on NYSE Liffe. Cocoa for March delivery lost 0.3 percent to $2,189 a ton on ICE.
Global cocoa stockpiles probably increased by 138,000 tons to 1.838 million tons in the last marketing year, according to two people familiar with a preliminary estimate the International Cocoa Organization will present at a meeting today.
White, or refined, sugar for March delivery fell 0.3 percent to $485.80 a ton in London. Raw sugar for March delivery was 0.7 percent down at 18.37 cents a pound in New York.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.