Coffee Futures Drop on Ample Supply; Cocoa, Cotton GainMarvin G. Perez
Coffee futures fell to the lowest in a week on speculation that global supplies will be ample. Cocoa, cotton and sugar advanced, while orange juice dropped.
The arabica-coffee market will be in a surplus even as leaf-rust disease cuts production in Central America, and prices may drop to $1.25 a pound, ABN Amro Bank NV said in a report. This week, Goldman Sachs Group Inc. cut its price forecast, citing prospects for higher output in Brazil, the world’s top producer. Vietnam is the second-biggest grower.
“Prices in general have been weak as traders anticipate another big crop out of Brazil starting this summer, and bears note that improved rains should help increase Vietnamese production potential this year,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a report.
Arabica coffee for July delivery declined 0.7 percent to settle at $1.374 at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price touched $1.361, the lowest for a most-active contract since April 16. The price has plunged 22 percent in the past 12 months.
Cocoa futures for July delivery climbed 1.5 percent to settle at $2,360 a metric ton. Earlier, the price reached $2,373, the highest since Dec. 19.
Cotton futures for July delivery advanced 0.3 percent to
83.23 cents a pound.
Raw-sugar futures for July delivery rose 0.1 percent to
17.38 cents a pound. Earlier, the sweetener touched 17.25 cents, the lowest since July 19, 2010.
Orange-juice futures for July delivery dropped 0.5 percent to $1.4325 a pound.