Robusta coffee climbed for the first time in eight sessions on speculation stockpiles will continue to fall, prompting roaster buying before the next crop starts in October in top-grower Vietnam. White sugar rose.
Inventories in warehouses monitored by the NYSE Liffe exchange will tumble 34 percent to 52,000 metric tons by the end of 2013, the lowest since May 2000, the average of 10 trader estimates compiled by Bloomberg showed. Rain in the largest growing regions of Indonesia, the third biggest producer, has been as much as twice the 30-year average since April, according to forecaster MDA Weather Services in Gaithersburg, Maryland.
“Rains in Indonesia are still helping the market with some supply delays and there’s still good demand for robusta,” Edward de Wismes, an agricultural broker at Aurel BGC in Paris, said by e-mail today.
Robusta coffee for delivery in November was 0.6 percent higher at $1,782 a ton by 11:03 a.m. on NYSE Liffe in London. The market was closed yesterday for a public holiday. Arabica coffee for December delivery fell 0.5 percent to $1.1715 a pound on ICE Futures U.S. in New York. It rose 0.6 percent yesterday.
Arabica coffee prices, down 19 percent this year, will continue to trend lower, said Kona Haque, an analyst at Macquarie Group Ltd. in London. There will be enough supplies even if Brazil, the world’s leading producer of the variety, buys beans to stockpile, she said in a report e-mailed today.
“Next season’s on-crop in Brazil will be bearishly supplemented with massive opening stocks,” Haque said, referring to the year in which arabica trees in Brazil enter the higher-yielding half of a two-year cycle. “While there may be tightness in the high-quality arabica supplies, this will be played out through differentials,” she said, referring to a discount or a premium paid to obtain physical coffee in relation to futures prices.
White sugar for October delivery gained 0.2 percent to $484.20 a ton on NYSE Liffe. Raw sugar for delivery in October slid 0.2 percent to 16.57 cents a pound on ICE.
Cocoa for December delivery was 0.3 percent higher at 1,641 pounds ($2,546) a ton in London. Cocoa for December delivery slid 0.7 percent to $2,463 a ton in New York.
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