Commodity Blog

Posts Tagged ‘coffee’

Coffee production in Colombia, the third-largest producer in the world, may jump 18 percent next year as warmer weather helps crops. Output may rise to 11 million bags with recovery from a slump after heavy rainfalls this year. Coffee has climbed 23 percent in New York this year as excess rains have hurt harvests in Colombia and Brazil.

Wheat stockpiles in the U.S. before the next harvest will exceed forecast with declining exports and falling global demand. Forecast for unsold supplies on May 31st is 864 million bushels, 16 percent up from a September forecast of 743 million and up from 657 million this year. December delivery for wheat gained $0.1075 (2.3 percent) to $4.74 per bushel on the Chicago Board of Trade.

Platinum and palladium gain as the dollar declines, boosting appeal of the metals as an inflation hedge. The U.S. economy shrank at a 0.7 percent annual rate in the second quarter. January futures for platinum delivery rose $24.70 (1.9 percent) to $1,302.90 per ounce on the New York Mercantile Exchange. December futures for palladium delivery gained $9.20 (3.2 percent) to $299.20 per ounce in New York.

Coffee advanced because of speculation that demand will rise in the U.S. with recovery from the global economic recession. Price is also boosted by the decline of dollar, increasing the appeal of some commodities. The dollar tumbled 0.8 percent against a basket of six major currencies. December futures for Arabica coffee delivery advanced $0.023 (1.8 percent) to $1.278 per pound on ICE Futures U.S. in New York.

Coffee rises on speculation that yield will decline in Colombia, the third-largest producer in the world. Production in Colombia may slid to around 10 million bags this year, compared to 11.5 million in 2008, because heavy rains delayed harvest. December delivery for Arabica-coffee gained $0.0065 (0.5 percent) to $1.3525 per pound by 9:45 on ICE Futures U.S. in New York.

Sugar prices advanced as a weaker dollar makes commodities more attractive as hedge against inflation and on expectations that global demand will exceed output for a second straight year. The dollar dropped to the lowest in 11 months against a basket of six major currencies, increasing appeal of commodities as alternative investment. March futures for raw-sugar delivery increased $0.0051 (2.2 percent) to $0.2383 per pound as of 10:28 on ICE Futures U.S. in New York.

Sugar falls for the third session in London on sales by investors after it rallied to a record last week. Sugar was spurred by expectations of drought in India (the second biggest producer and largest consumer) and heavy rainfalls in Brazil (the world’s biggest producer). Now Brazil and India are attempting to boost cane crop. October delivery for raw sugar declined to $0.2155 per pound (1.3 percent) on ICE Futures U.S. in New York.

Coffee prices experience the longest decline since December because of concerns for slow economic recovery. Worries rises as worldwide economic recovery are going slower than hoped for: house construction in the U.S. unexpectedly fell in July, Japan’s economy grew less than expected, foreign investment in China fell a 10th straight month. December futures for Arabica-coffee delivery fell $0.0095 (0.7 percent) to $1.28 per pound as of 10:49 on ICE Futures U.S. in New York.

Gold gained for the first time in three sessions as weaker dollar may spur demand for the metal as an alternative investment. Gold investors are hoping for inflation to boost demand for the metal. December futures for gold delivery rose $2.30 (0.2 percent) to $938.10 per ounce by 11 on the New York Mercantile Exchange’s Comex division.

Sugar futures rose for the second time in three days on speculation that a global production deficit will widen toward the end of 2009. Coffee also gained.

The shortfall may reach 4.5 million metric tons in the year starting in April, up from a March estimate of 2.5 million tons, according to sugar broker and researcher Kingsman SA. The premium for October futures over July has risen 49 percent since March 31, showing there is less demand for immediate supply than for later this year, said Jeff Bauml at broker R.J. O’Brien.

“The perception within the trade is that the fourth quarter is when the deficit will be felt the most,” Bauml, an R.J. O’Brien senior vice president, said by telephone from New York.

Raw-sugar futures for October delivery rose 0.05 cent, or 0.3 percent, to 16.47 cents a pound on ICE Futures U.S. in New York. The price earlier fell as much as 1.1 percent and gained 0.8 percent. The spread between October and the July contract was 1.12 cents a pound, compared with 0.75 cent at the end of March and a record 1.28 cents on June 3.

Brazil, the world’s largest producer, and India, the top consumer, have helped keep sugar futures in a range over the past month, said Jonathan Kingsman, the head of Kingsman SA in Lausanne, Switzerland. October futures have traded between 15.62 cents and 16.91 cents since May 11.