Coffee futures plunged 5.7 percent to a 20-week low on speculation that demand will ease as more supplies become available from Brazil, the world’s top producer and exporter.
Drier weather in coming days will aid Brazil’s harvest, MDA Weather Services in Gaithersburg, Maryland, said in a report. Mid-July is the peak period for collecting beans in the South American nation, while demand typically slows during summer in the Northern Hemisphere, said Christian Wolthers, the president of Wolthers Douque, an importer in Fort Lauderdale, Florida.
“Bigger masses of coffee are coming in during this month, roasters are off and people are drinking less coffee,” Wolthers said in a telephone interview.
Arabica coffee for September tumbled 9.9 cents to close at $1.63 a pound at 1:53 p.m. on ICE Futures U.S. in New York, the biggest drop for a most-active contract since May 16. The price touched $1.628, the lowest since Feb. 20.
Cotton futures for December delivery declined 1.6 percent to 68.55 cents a pound. The price touched 68.5 cents, the lowest since June 28, 2012.
Stockpiles in the U.S., the top exporter, will probably rise in the 12 months starting Aug. 1 as plantings increase, a Bloomberg survey of seven analysts showed. The government will release its estimates tomorrow.
Cocoa futures for September delivery fell 0.2 percent to $3,081 a metric ton. The price has climbed 14 percent this year.
Processing in North America probably rose 2.2 percent in the second quarter as chocolate demand increased, according to the average of seven analysts surveyed by Bloomberg News. An industry association will release figures on July 17.
Raw-sugar futures for delivery in October dropped 0.7 percent to 17.29 cents a pound.
Orange-juice futures for September delivery lost 0.9 percent to $1.4965 a pound.
Bloomberg
