Coffee Falls in New York as Traders ‘Skeptical’ of Rust Damage
Coffee fell for a second day in New York on speculation that even leaf rust endangering Latin American crops won’t be enough to dent a glut of stockpiles.
Beans in warehouses monitored by ICE Futures U.S. are the highest since March 2010. The leaf rust fungus known as roya may cut Guatemala’s crop by 50 percent in the harvest that starts Oct. 1, Christian Wolthers, president of importer Wolthers America in Fort Lauderdale, Florida, said Feb. 26.
“The roya issues have not been enough yet to put a serious bid underneath the market as the trader will likely continue to be skeptical about the matter for the time being,” Sterling Smith, futures specialist at Citigroup Inc. in Chicago, said in an e-mailed report dated yesterday.
Arabica coffee for May delivery dropped 0.9 percent to $1.421 a pound at 9:04 a.m. on ICE Futures U.S. in New York.
Raw sugar for May delivery fell 0.2 percent to 18.04 cents a pound. The March contract, which expires today, dropped 0.3 percent. The delivery from the contract that will published tomorrow will probably be small, Nick Penney, senior trader at Sucden Financial Ltd. in London, said in an e-mail today.
Cocoa declined 0.1 percent to $2,128 a metric ton.
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