Oct. 29 (Bloomberg) -- Arabica coffee fell to the lowest level in more than four months as the start of the harvest in Central American nations added to rising stockpiles. Cocoa rose.
Arabica bean inventories in warehouses monitored by the ICE Futures U.S. exchange in New York stood at 2.41 million bags as of Oct. 26, the highest since May 2010. The 2012-13 crop in Central America started this month. Demand for arabica coffee fell as some roasters increased their usage of cheaper robusta beans following a rise to a 14-year high last year.
“The C contract, with certified stocks reaching 2.4 million bags, or an increase of 875,000 bags so far this year, is feeling the effect of the start of the harvest in Central America and little buying interest from the industry,” Rodrigo Costa, a contributor for Sao Paulo-based Archer Consulting, wrote in a report e-mailed today, referring to arabica futures.
Arabica coffee for December delivery fell 0.6 percent to $1.568 a pound by 8:34 a.m. on ICE Futures U.S. in New York. The price touched $1.563, the lowest since June 25. Robusta coffee for January delivery slid 1.3 percent to $1,994 a metric ton on NYSE Liffe in London after touching $1,987, the lowest since Sept. 6.
Robusta beans slid to a seven-week low on speculation this season’s harvest in Vietnam, the world’s largest grower of the variety, will be similar to last year’s record. Vietnamese coffee exports may more than triple to 105,000 tons this month, according to the General Statistics Office in Hanoi.
Vietnamese coffee prices fell to 39,800 dong ($1.91) a kilogram (2.2 pounds), the lowest since May 8, data from the Daklak Trade & Tourism Center on Bloomberg showed. The 2012-13 season there started this month.
“With the start of a Vietnamese harvest supposedly as big as the previous, Liffe quotes may be pressured,” Costa said.
Raw sugar for March delivery rose 0.2 percent to 19.39 cents a pound on ICE. White, or refined, sugar for March delivery slid 0.1 percent to $524 a ton on NYSE Liffe.
Cocoa for December delivery was up 0.2 percent to $2,388 a ton in New York. Cocoa for March delivery advanced 0.2 percent to 1,547 pounds ($2,483) a ton in London.
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