Coffee Futures Fall Most in Two Weeks; Cocoa, Cotton Drop
Coffee futures fell the most in two weeks as weather concerns eased in Brazil, the world’s biggest producer, and U.S. inventories climbed. Cocoa, cotton and orange also slid, while sugar gained.
Somar Meteorologia, based in Sao Paulo, said Brazil’s coffee-growing areas may get rain after Oct. 10. Futures rallied 5.3 percent last month amid speculation that dry conditions would hamper crop development. Stockpiles at warehouses monitored by ICE Futures U.S. have surged 44 percent this year to the highest since June 2010.
Rain “during flowering may turn out to be beneficial” for Brazilian yields, Andrey Kuznetsov, the president of Wild Bear Capital, a broker in Moscow, said in an e-mail. “The market has huge supplies.”
Arabica-coffee futures for December delivery slumped 3.3 percent to settle at $1.7505 a pound at 2 p.m. on ICE in New York, the biggest decline for a most-active contract since Sept. 20. The price has dropped 23 percent this year.
Selling by producers “halted all rally attempts,” Joe Scaduto, the president of JPS Commodities LLC, a broker in New York, said in a report.
Cocoa futures for December delivery fell 0.9 percent to $2,395 a metric ton on ICE. Earlier, the price touched $2,386, the lowest since Aug. 24.
Cotton futures for December delivery slipped 0.1 percent to 72.09 cents a pound, snapping a three-day rally.
Orange-juice futures for November delivery dropped 0.4 percent to $1.155 a pound.
Raw-sugar futures for March delivery climbed 0.1 percent to 21.6 cents a pound. Earlier, the price reached 21.77 cents, the highest since Aug. 7.
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