Coffee Futures Fall on Ample Global Supplies; Cocoa, Cotton Drop
Coffee futures fell on signs that global supplies will be more than enough to meet demand. Cocoa, and cotton also slid. Sugar was unchanged while cotton rose.
In May, coffee exports from Brazil, the world’s top shipper, rose 22 percent from a year earlier, Cecafe, the country’s council of green coffee exporters said yesterday. Shipments from Guatemala, Costa Rica and Honduras also gained last month, separate reports showed. The Brazilian real fell to a four-year low against the U.S. dollar after Standard & Poor’s cut the nation’s credit-rating outlook to negative.
May export data “tells me that supplies are so ample,” Hector Galvan, a senior commodity broker at RJO Futures in Chicago, said in an e-mail. “The dollar turnaround to higher levels against the real pushed this market lower,” as that makes exports more profitable for Brazilian growers than sales in the domestic market, he said.
Arabica coffee for July delivery slumped 0.9 percent to $1.2825 a pound at 10:25 a.m. on ICE Futures U.S. in New York.
Also on ICE, cocoa futures for July delivery fell 0.2 percent to $2,359 a metric ton, heading for the first loss this week.
Cotton futures for July delivery slid 0.2 percent to 84.7 cents a pound in New York.
Raw-sugar futures for July delivery were unchanged at 16.48 cents a pound.
Orange-juice futures for July delivery climbed 0.2 percent to $1.50 a pound.
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