DJ Coffee Prices Bounce Higher
Coffee prices bounced higher Friday as logistical issues in Colombia led to temporary supply disruptions in the world’s second-largest producer of the mild-flavored arabica bean.
Dow Jones Newswires – Arabica coffee for March delivery rose 0.7% to $1.152 on the ICE Futures U.S. exchange.
ED&F Man\’s Volcafe, a commodities firm, said in a note that logistical delays have been reported
at the Colombia port, triggering nearby demand. In Brazil, the world\’s largest coffee producer, the
firm reported that the market is at a \”standstill,\” with no bags sold in the most recent auction at
current minimum prices.
On Friday, Capital Economics, a London-based research consultancy, said it sees limited recovery
for coffee prices in the coming year, mostly because of the U.S. Department of Agriculture\’s
forecast for a 2% r ise in demand for coffee, outstripping a forecast for a 0.4% rise in world
production.
In the near-term, the fact that currencies in Brazil and Colombia have been weakening against the
dollar is encouraging exports as producers take advantage of favorable exchange rates for
dollar-denominated goods, depleting stockpiles of coffee in producing nations.
However, the International Coffee Organization said Friday that it expects this year will be the
first rise in global output in three years and analysts are predicting that rains will mean larger
crops out of Brazil next year.
In other markets, cocoa for March rose 0.3% to $2,863 a ton, raw sugar futures slumped 0.6% to
14.36 cents a pound, cotton for March was up 0.6% at 62.46 cents a pound and frozen concentrated
orange juice futures were flat at $1.2075 a pound.
Write to Julie Wernau at julie.wernau@wsj.com
(END) Dow Jones Newswires