COMMODITIES VIEW

Go Back   COMMODITIES VIEW > Specific Commodity markets > Misc Commodities

Reply
 
Thread Tools Display Modes
  #1  
Old June 10th, 2013, 12:16 PM
matthew's Avatar
matthew matthew is offline
Administrator
 
Join Date: Nov 2005
Posts: 16,264
Coffee Drops as Weaker Real Prompts Brazilian Sales; Sugar Falls

By Isis Almeida - Jun 10, 2013 7:27 AM ET
Arabica coffee fell for a second day in New York as the harvest advanced in Brazil, the world’s leading producer, and a weaker local currency prompted growers to sell more in the futures market. Raw sugar declined.
Dry weather allowed growers to accelerate pickings in Brazil, Rio de Janeiro-based broker Flavour Coffee said in a report e-mailed on June 6. Dryness came after “abnormal rain”in the beginning of this month, according to Sao Paulo-based weather forecaster Somar Meteorologia. The Brazilian real slid 6.2 percent against the dollar over the past month, making sales priced in the U.S. currency more attractive.
“A common theme aligning coffee and sugar is not just heavy surpluses, but also the start of the large Brazilian harvests and more recently, the weakening Brazilian currency,”Kona Haque, an analyst at Macquarie Group Ltd. in London, said in a report e-mailed today. A weaker real “may encourage further selling in coming weeks,” she said.
Arabica coffee for July delivery fell 0.3 percent to $1.266 a pound by 7:12 a.m. on ICE Futures U.S. in New York. The price slid 1.9 percent in the previous trading session. Robusta coffee for delivery in the same month retreated 0.2 percent to $1,844 a metric ton in London.
Brazil is harvesting its 2013-14 crop and production will be a record for a year in which trees enter the lower-yielding half of a two-year cycle, the government estimates. Output will be 48.6 million bags, crop-forecasting agency known as Conab said on May 14. A bag of coffee usually weighs 132 pounds.
Robusta coffee has fallen 9.3 percent in the past month as supplies improved. Prices in Vietnam, the main grower of the variety used in instant drinks and espresso, fell to 39,200 dong ($1.87) a kilogram (2.2 pounds) today, the lowest since Jan. 30,data from the Daklak Trade & Tourism Center on Bloomberg showed.
Robusta Supplies

“In robusta, supplies are improving, with Vietnamese growers likely to be scale-down sellers as Indonesian new crop arrivals start picking up,” Macquarie’s Haque said.
Raw sugar for delivery in July was down 0.1 percent at 16.42 cents a pound in New York. White, or refined, sugar for delivery in August was little changed at $481.30 a ton in London.
Cocoa for July delivery fell 0.4 percent to $2,355 a ton on ICE. Cocoa for delivery in July declined 0.3 percent to 1,559 pounds ($2,423) a ton on NSYE Liffe.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
__________________

Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are Off
[IMG] code is On
HTML code is On

Forum Jump

Powered by vBadvanced CMPS v3.2.2

All times are GMT -4. The time now is 12:59 PM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2017, vBulletin Solutions, Inc.