Coffee Falls in New York on Outlook for More Supply; Cocoa Gains
Brazil will produce about 63 million bags of coffee next year, up from 52 million to 54 milion bags this year, Judy Ganes-Chase, president of J. Ganes Consulting, said in an interview in Jakarta today. Prices have dropped 4.5 percent this year as bean inventories in warehouses monitored by ICE Futures U.S. climbed 6.6 percent.
“Farmers are not cutting back plantings in response to low prices,” Edward Meir, an analyst at INTL FCStone in New York, said in an e-mailed report today. “There is not much on the near-term horizon that makes the case for higher prices.”
Arabica coffee futures for May delivery dropped 0.7 percent to $1.374 a pound by 7:03 a.m. on ICE Futures U.S. in New York. Prices may trade at $1.30 to $1.44 a pound this month, Meir said.
Cocoa climbed 0.2 percent to $2,188 a ton and raw sugar advanced 0.2 percent to 17.72 cents a pound.
In London, where trading was closed yesterday, robusta futures climbed 0.1 percent to $2,053 a metric ton, cocoa advanced 0.3 percent to 1,472 pounds a ton and white, or refined, sugar was little changed at $503.20 a ton. Robusta will trade at $1,900 to $2,100 a ton this month, “likely pressured by improving crop prospects out of Vietnam,” Meir said.
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