Coffee Gains Before Possible Frost; Raw Sugar Extends Advance Arabica coffee climbed in New York as cold weather forecast for Brazil within two days may damage next year’s harvest. Sugar rose for a fourth day. Temperatures tomorrow night into the morning of July 24 may fall to minus 2 degrees Celsius (28.4 degrees Fahrenheit) in Parana, David Streit, senior lead forecaster at Commodity Weather Group in Bethesda, Maryland, said by phone today. Coffee has rallied the past two days only to end lower. “We think that Brazilian growers will take advantage of any ensuing rally by selling some of their new crop,” Kona Haque, an analyst at Macquarie Group Ltd. in London, said in a report dated July 19. “This will serve to cap both the extent of the rally as well as the duration of it.” Arabica for September delivery rose 1.8 percent to $1.2495 a pound by 6:55 a.m. on ICE Futures U.S. in New York. Rain over the weekend in Brazil sugar areas was lighter than forecast, and dry weather is anticipated for the next couple of weeks, Streit said. Raw sugar for October delivery climbed 0.9 percent to 16.44 cents a pound on ICE, the fourth consecutive advance and the longest streak for a most-active contract since April 30. Cocoa fell 0.6 percent to $2,351 a metric ton on ICE, the first drop in five days. Ivory Coast has sold 750,000 tons of the new season crop, with 80 percent of sales expected to be reached by mid-August, Macquarie said, citing unidentified people from the Ivory Coast ministry. “If true, then this leaves more room for prices to move upward as there will be less origin selling pressure,” according to Macquarie.
Posted on: Mon, 22 Jul 2013 11:23:14 +0000
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