Coffee Climbs in London as Rain Seen Delaying Crop in Indonesia
Robusta coffee climbed for a fifth day in London, heading for the biggest weekly advance in 10 months, as excessive rain may delaying harvesting in Indonesia.
Rainfall in Java has been “persistently above average over the last several weeks,” MDA Weather Services in Gaithersburg, Maryland, said in a report e-mailed yesterday. Indonesia is the third-largest coffee producer, after Brazil and Vietnam, according to the U.S. Department of Agriculture.
“Six weeks ago rain was disrupting the new harvest in other areas as well,” said Andrea Thompson, head of research and analysis at INTL FCStone Inc.’s CoffeeNetwork in Belfast, Northern Ireland. “Most of Vietnam and Indonesia are holding back supplies seeing how much higher prices can go.”
Robusta for September delivery climbed 0.6 percent to $1,894 a metric ton at 10 a.m. on NYSE Liffe in London. Prices are up 4.7 percent this week, heading for the biggest weekly jump since Sept. 28. Arabica for September delivery climbed 0.6 percent to $1.2415 a pound on ICE Futures U.S. in New York.
“Arabica doesn’t really have solid fundamentals behind it,” Thompson said. “This is a technical move.” Arabica prices have dropped 14 percent this year while robusta fell 1.5 percent.
Cocoa in London gained 0.3 percent and advanced 0.1 percent in New York to $2,242 a ton. White, or refined, sugar fell 0.1 percent to $461.60 a ton and raw sugar gained 0.2 percent to 16.13 cents a pound in New York.
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