Coffee drops for fifth consecutive day on stable stockpiles, cocoa slides
Monday, September 19, 2011
Coffee dropped for a fifth day in New York amid stockpiles that remain stable before harvests begin in Central America and Colombia. Cocoa futures also dropped.
Arabica coffee scheduled for December delivery lowered 1.1 percent to reach $2.575 per pound on ICE Futures U.S., Bloomberg reports. Robusta coffee scheduled for November delivery sank 1.9 percent to reach $2,069 per metric ton on NYSE Liffe in London. Cocoa futures on ICE dropped, and were trading near their lowest point in 10 months, according to Reuters.
According to the European Coffee Federation, coffee inventories in Europe totaled 13.66 million bags on July 31, Bloomberg reports.
"Global stocks, which could have suffered a sharp fall with reduced exports from Brazil in the last months, have been stable," Rodrigo Costa, a contributor for Sao Paulo-based consultancy Archer Consulting, stated in a report on September 18, according to the media outlet.
Cepea, a University of Sao Paulo research group, stated that falling coffee prices have contributed to cutbacks in supply from producers, Bloomberg reports. Brazilian Coffee growers had picked 90 percent of their crop and sold only 30 percent in the beginning of August.
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