Coffee Tumbles to Lowest Since July 2009; Orange Juice Plunges

Coffee sank to the lowest in more than four years as surging stockpiles signal ample supply in the U.S., the world’s biggest consumer and importer. Orange juice fell the most in 2013. Cocoa and sugar slid, while cotton rose.

In August, the inventory of unroasted beans in the U.S. rose 7.4 percent from a year earlier to the highest since July 2009, the New York-based Green Coffee Association said yesterday. This year, top grower Brazil may reap the biggest crop ever, while second-ranked Vietnam may collect record output in the 12 months starting Oct. 1, Volcafe, the Winterthur, Switzerland-based coffee unit of commodity trader ED&F Man Holdings Ltd., said last month.

“The GCA data shows near-term supply will limit the upside in the market,” Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago, said in a telephone interview. “Supplies will continue to be abundant for another year.”

Arabica coffee for December delivery dropped 3.6 percent to settle at $1.1495 a pound at 2 p.m. on ICE Futures U.S. in New York, after touching $1.1425, the lowest for a most-active contract since July 13, 2009.

Orange-juice futures for November delivery plunged 6 percent to $1.2755 a pound, the biggest drop since Dec. 31.

No Storms

In the four weeks ended Aug. 31, U.S. retail sales of orange juice slid 4.5 percent from a year earlier, the Florida Department of Citrus said yesterday. There are no storms in the Atlantic that may harm groves in Florida, the world’s largest citrus grower after Brazil, Bradley Harvey, operational meteorologist at MDA Weather Services in Gaithersburg, Maryland, said in a telephone interview. The hurricane season peaks by Sept. 10, he said.

“Demand has not been super,” Jack Scoville, a vice president for Price Futures Group in Chicago, said in a telephone interview. “If there’s no weather threat, there’s no reason to buy.”

Cocoa futures for December delivery slid 0.8 percent to $2,614 a metric ton.

Raw-sugar futures for March delivery slid 0.7 percent to 17.4 cents a pound. Cotton futures for December delivery rose 0.5 percent to 84.44 cents a pound.

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