Coffee Falls on Speculation About Stronger Grower Selling; Cocoa Advances
Robusta prices in London have jumped 60 percent in the past year and arabica in New York is up 66 percent. Brazil, the world’s largest grower, is near the end of its harvest while Vietnam has limited sales until this month, said Andrea Thompson, head of research and analysis at CoffeeNetwork.
“There is a little more Vietnamese selling,” Thompson said by phone from Belfast, Northern Ireland. “There has been quite solid industry support so it just depends on the extent of any pressure coming from Vietnam.”
Robusta coffee for March delivery fell $26, or 1.2 percent, to $2,121 a metric ton by 12:46 p.m. in London on NYSE Liffe. Arabica coffee for March delivery declined 1.5 cents, or 0.6 percent, to $2.3385 a pound on ICE Futures U.S. in New York.
Brazil’s coffee exports dropped to 3.15 million bags in November from 3.5 million bags in October while shipments from Vietnam were unchanged at 1 million bags, according to the International Coffee Organization in London. Indonesia, grower of arabica and robusta beans, will harvest 9 million bags of coffee in the 2010-11 season started Oct. 1, down from 9.5 million bags a year earlier, Thompson said.
Indonesia is the third-largest grower of coffee, according to the ICO.
In New York, cocoa for March delivery climbed $54, or 1.8 percent, to $3,090 a ton and raw sugar for March delivery advanced 0.04 cent, or 0.1 percent, to 31.16 cents a pound.
In London, cocoa for March delivery gained 35 pounds, or 1.7 percent, to 2,045 pounds ($3,275) a ton, or 14 pounds more expensive than the May contract. White, or refined, sugar for March delivery dropped 20 cents to $780 a ton.
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