Coffee Slides on Ample South American Supplies; Cocoa DeclinesMarvin G. Perez
Arabica coffee futures fell the most in almost two weeks as supply remains abundant in South America, the world’s top growing region of the variety. Cocoa and cotton slid, while sugar and orange juice rose.
Output in Colombia, the biggest producer of arabica beans after Brazil, jumped 45 percent in November from a year earlier to 1.113 million bags, the most for that month since 2007, a growers’ group said today. Brazil’s harvest may yield 58 million bags next year, matching a record in 2012, according to estimates by exporter Guaxupe, the nation’s sixth largest shipper.
“Colombia’s crop continues to recover,” Rodrigo Costa, a trading director at Caturra Coffee Corp., a dealer in Elmsford, New York, said in a telephone interview. “We still have to work through some of the excess supply and any rally will uncover some producer selling.”
Arabica coffee for March delivery fell 2.2 percent to $1.06 a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest drop since Nov. 22.
The price can still decline to 95 cents a pound, Costa said, without providing a time frame. A bag weighs 60 kilograms, or 132 pounds.
Cocoa futures for March delivery slid 0.5 percent to $2,754 a metric ton, the third straight drop.
Cotton futures for March delivery fell 0.3 percent to 78.85 cents a pound.
Raw-sugar futures for March delivery rose 0.1 percent to 16.69 cents a pound, snapping an 11-session slump, the longest since August 2012.
Orange-juice futures for January delivery gained 1.8 percent to $1.38 a pound.