Coffee Extends Longest Slump Since May 2012; Sugar Falls

Coffee fell, capping the longest monthly slump in more than a year, as prospects improved for the crop in Guatemala and exports from Brazil. Orange juice also declined, while sugar, cotton and cocoa advanced.

Guatemala will harvest 3.07 million bags in the 12 months beginning Oct. 1, a 2.2 percent slide from a year earlier that is below the 40 percent loss forecast in February, the National Coffee Association said yesterday. Farmers were more successful than expected in limiting rust disease on trees. Brazil, the world’s largest grower of coffee, sugar and orange juice, saw its currency, the real, drop to a four-year low against the dollar, boosting the incentive for exporters.

“The news on Guatemala eased concern about the impact of rust and improved the prospects for the region’s crop next year,” Hernando de la Roche, a senior vice president at INTL FCStone in Miami wrote in an e-mail today. “The falling real is also putting pressure on the market” by encouraging exporters to sell commodities priced in dollars, he said.

Arabica coffee for September delivery fell 1.4 percent to settle at $1.186 a pound at 2 p.m. on ICE Futures U.S. in New York, after touching $1.174, the lowest for a most-active contract since June 20. Prices retreated 1.5 percent in July, the sixth straight decline and the longest slump since May 2012.

Orange-juice futures for September delivery slid 1.2 percent to $1.439 a pound on ICE, paring July’s gain to 12 percent, the most since November.

Raw-sugar futures for delivery in October rose 0.2 percent to 16.97 cents a pound in New York, the fifth straight increase and the longest rally for a most-active contract since September.

Cotton futures for delivery in December climbed less than 0.1 percent to 85.18 cents a pound. Prices added 1.4 percent in July.

Cocoa futures for September delivery advanced 0.5 percent to $2,298 a metric ton, extending the monthly gain to 6.2 percent, the first increase for a most-active contract since April.

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