Arabica coffee jumped to the highest price in almost 14 years as adverse weather threatened crops in Colombia, the world’s biggest producer after Brazil.
Sugar gained, while cocoa declined.
Colombia’s Agriculture Ministry said a lack of sunshine will hurt the nation’s coffee crops over the next few months. Plantations are being damaged by landslides and rains, Hamburg based broker Eugen Atte GmbH said on April 28.
“What is scarier is that, according to weather experts, the worse rains are yet to come,” the broker said in a report.
“With concern of excessive rains in Colombia and steady demand, coffee will continue to go even higher,” said Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota.
“The scenario is very bullish.”
Arabica coffee for July delivery rose 0.35 cent, or 0.1 percent, to $3.0545 a pound at 12:08 p.m. on ICE Futures U.S. in New York. Earlier, the price touched $3.089, the highest since May 1997.
Strong demand, record-low inventories and production disruptions in major growers are supporting the market, Bjarne Schieldrop, chief commodity analyst at SEB AB, Sweden’s third- biggest bank by market value, wrote in a report today.
“The situation originated with three consecutive disappointing Colombian crop years.”
In London, robusta-coffee futures for July delivery rose $55, or 2.2 percent, to $2,610 a metric ton on NYSE Liffe.
Raw-sugar futures for July delivery rose 0.31 cent, or 1.4 percent, to 22.18 cents a pound on ICE. Refined-sugar futures for August delivery fell $8.10, or 1.3 percent, to $607 a ton on NYSE Liffe.
Cocoa futures for July delivery dropped $20, or 0.6 percent, to settle at $3,271 a ton in New York.
In London, cocoa futures for July delivery rose $3, or 0.2 percent, to $1,984 a ton.
Sugar gained, while cocoa declined.
Colombia’s Agriculture Ministry said a lack of sunshine will hurt the nation’s coffee crops over the next few months. Plantations are being damaged by landslides and rains, Hamburg based broker Eugen Atte GmbH said on April 28.
“What is scarier is that, according to weather experts, the worse rains are yet to come,” the broker said in a report.
“With concern of excessive rains in Colombia and steady demand, coffee will continue to go even higher,” said Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota.
“The scenario is very bullish.”
Arabica coffee for July delivery rose 0.35 cent, or 0.1 percent, to $3.0545 a pound at 12:08 p.m. on ICE Futures U.S. in New York. Earlier, the price touched $3.089, the highest since May 1997.
Strong demand, record-low inventories and production disruptions in major growers are supporting the market, Bjarne Schieldrop, chief commodity analyst at SEB AB, Sweden’s third- biggest bank by market value, wrote in a report today.
“The situation originated with three consecutive disappointing Colombian crop years.”
In London, robusta-coffee futures for July delivery rose $55, or 2.2 percent, to $2,610 a metric ton on NYSE Liffe.
Raw-sugar futures for July delivery rose 0.31 cent, or 1.4 percent, to 22.18 cents a pound on ICE. Refined-sugar futures for August delivery fell $8.10, or 1.3 percent, to $607 a ton on NYSE Liffe.
Cocoa futures for July delivery dropped $20, or 0.6 percent, to settle at $3,271 a ton in New York.
In London, cocoa futures for July delivery rose $3, or 0.2 percent, to $1,984 a ton.
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