Coffee Gains in New York as Robusta Harvest Delayed After RainClaudia Carpenter
Coffee rose in New York, following gains in robustas as rain may delay harvesting in Indonesia.
Rainfall in Java has been “persistently above average over the last several weeks,” MDA Weather Services in Gaithersburg, Maryland, said in a report e-mailed yesterday. Indonesia is the third-largest coffee producer, after Brazil and Vietnam, according to the U.S. Department of Agriculture.
“Six weeks ago rain was disrupting the new harvest in other areas as well,” said Andrea Thompson, head of research and analysis at INTL FCStone Inc.’s CoffeeNetwork in Belfast, Northern Ireland. “Most of Vietnam and Indonesia are holding back supplies seeing how much higher prices can go.”
Arabica for September delivery climbed 0.3 percent to $1.238 a pound by 7:27 a.m. in New York on ICE Futures U.S.
Robusta for September delivery advanced 0.3 percent to $1,889 a metric ton on NYSE Liffe in London. Prices are up 4.4 percent this week, heading for the biggest weekly jump since Feb. 1.
“Arabica doesn’t really have solid fundamentals behind it,” Thompson said. “This is a technical move.” Arabica prices have dropped 14 percent this year while robusta fell 1.8 percent.
Cocoa in London gained 0.3 percent and advanced 0.2 percent in New York to $2,243 a ton. White, or refined, sugar advanced 0.2 percent to $462.70 a ton and raw sugar gained 0.4 percent to 16.17 cents a pound in New York.