Robusta Coffee Rises to 2-Week High on Stockpiles; Cocoa Falls
Robusta coffee rose to the highest price in two weeks in London after a report showed traders continued to tap stockpiles in Europe. Cocoa fell.
Bean stockpiles in warehouses monitored by the NYSE Liffe exchange fell 15 percent to 83,770 metric tons in the two weeks to Aug. 5, data on the exchange website yesterday showed.
Robusta coffee was little changed this year while arabica futures slumped 15 percent as global supplies outpaced demand. Brazil, the world’s biggest coffee grower, will harvest 48.6 million bags of coffee, a record for a year in which trees enter the lower-yielding half of a two-year cycle, the government estimates. Coffee production in Colombia, the world’s second-biggest producer of arabica beans, rose 38 percent in the January-July period to 5.97 million bags.
“Robusta is outperforming the arabica variety because supply in arabica is greatly improved with Brazil harvesting its biggest ever off-year crop and Colombia obviously seen headed to a very large recovery,” Stefan Uhlenbrock, an analyst at F.O. Licht GmbH, said today by phone.
Robusta coffee for delivery in November was 0.7 percent higher at $1,922 a ton by 12:03 p.m. on NYSE Liffe in London. It reached $1,929 earlier today, the highest for the contract since July 26. Arabica coffee for September delivery gained 0.4 percent to $1.225 a pound on ICE Futures U.S. in New York.
Robusta futures for September delivery were $18 a ton more expensive than the November contract. That market structure, in which earlier-dated contracts are more expensive than later ones, is known as backwardation and may signal limited supplies.
Cocoa for September delivery fell 1.2 percent to 1,635 pounds ($2,540) a ton on NYSE Liffe. Cocoa for December delivery fell 0.8 percent to $2,458 a ton on ICE.
Ghana, the second-biggest cocoa grower, offered to sell beans from its next crop this week as futures traded in London rallied to a 10-month high yesterday, according to three traders with direct knowledge. The beans were for sale at a premium of about 80 to 90 pounds a ton above the price of the May futures traded on NYSE Liffe, they said.
White sugar for October delivery rose 0.4 percent to $494.90 a ton in London. Raw sugar for delivery in October was little changed at 16.80 cents a pound in New York.
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