Coffee Falls in New York on Latin America Supplies; Sugar Drops
Coffee fell in New York on signs supplies from Latin America are overwhelming roaster demand. Sugar also declined.
Colombia’s 2013 coffee crop will expand to 10 million bags from 8 million bags this year, the Colombian Coffee Growers Federation’s Tokyo-based green coffee manager said at a coffee conference in Vietnam today. Stockpiles of beans in warehouses monitored by ICE Futures U.S. are up 65 percent this year, the biggest jump in 12 years, as Brazil harvested a record crop.
“We’re maybe seeing more attention on the Latin America crops,” Andrea Thompson, head of research and analysis at CoffeeNetwork in Belfast, Northern Ireland, said by phone today. “There’s definitely signs the crops there are inching up.”
Arabica coffee for March delivery fell 1 percent to $1.494 a pound by 8:01 a.m. in New York on ICE. The price is down 34 percent this year, making it the biggest loser among the 24 commodities tracked by the Standard & Poor’s GSCI gauge, which fell 1.6 percent. Robusta coffee dropped 1.4 percent to $1,878 a metric ton (85.18 cents a pound) on NYSE Liffe in London.
CoffeeNetwork is currently looking at world coffee output of 62.6 million bags and global consumption of 61.7 million bags, leaving a surplus of 900,000 bags, Thompson said in an e- mailed commentary today.
Raw sugar futures dropped 0.5 percent to 19.26 cents a pound and cocoa in New York advanced 0.2 percent.
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