Coffee Futures Cap Longest Slump Since February; Sugar DeclinesMarvin G. Perez
Coffee futures capped the longest slide in more than three months on signs that global supplies will be more than enough to meet demand. Sugar and cotton also dropped, while cocoa and orange juice advanced.
In May, 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 dollar. Coffee has dropped for four straight weeks, the longest slump since February.
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 for Brazilian growers more profitable than sales in the domestic market, he said.
Arabica coffee for July delivery fell 1.9 percent to settle at $1.2695 a pound at 2 p.m. on ICE Futures U.S. in New York.
Also on ICE, raw-sugar futures for July delivery dropped
0.3 percent to 16.43 cents a pound. The sweetener fell 0.7 percent this week, the fifth straight loss and the longest decline since August.
Cotton futures for July delivery slid less than 0.1 percent to 84.86 cents a pound in New York, paring this week’s gain to
Cocoa futures for July delivery rose less than 0.1 percent to $2,364 a metric ton, the fifth consecutive advance and the longest rally since mid-November. This week, the price jumped
Orange-juice futures for July delivery climbed 1.1 percent to $1.514 a pound.