Coffee Futures Fall for Second Day on Bumper Brazil CropsMarvin G. Perez
Coffee fell for the second straight day on more signs of higher output in Brazil, the world’s biggest exporter. Cotton also slid, while sugar, cocoa and orange juice rose.
Brazilian coffee growers may reap 47 million to 50.2 million bags in 2013, approaching the record 50.8 million collected last year, even as trees enter the lower-yielding half of a two-year cycle, the Agriculture Ministry said today. In 2011, the harvest was 43.5 million bags, each weighing 60 kilograms, or 132 pounds.
“We will have two consecutive years of bumper” crops, Hector Galvan, a senior broker at RJO Futures in Chicago, said in an e-mail. “This continues to be priced into the market as traders try to find a bottom.”
Arabica coffee for March delivery fell 0.2 percent to settle at $1.479 a pound at 2 p.m. on ICE Futures U.S. in New York. The price, down 1.5 percent yesterday, has slumped 33 percent in the past 12 months.
Cotton futures for March delivery dropped 0.4 percent to 74.79 cents a pound. Yesterday, the fiber fell 0.8 percent.
China, the world’s largest user and importer, will start selling from government reserves this month to satisfy demand from local mills, two executives with direct knowledge of the matter said.
The “Chinese move to auction bulging reserve stocks could keep prices well contained” through July 31, Gary Raines, an economist at FCStone Fibers & Textiles in Nashville, Tennessee, said in an e-mail.
Raw-sugar futures for March delivery rose 0.3 percent to 18.72 cents a pound. Earlier, the price touched 18.52 cents, the lowest for a most-active contract since Dec. 13.
Cocoa futures for March delivery advanced 0.4 percent to $2,223 a metric ton.
Orange-juice futures for March delivery increased 1.2 percent to $1.107 a pound. Earlier, the price touched $1.091, the lowest since Nov. 13.