Coffee rose to a two-week high in New York on speculation that growers won’t be able to maintain the recent pace of exports. Cocoa fell, while sugar gained.
In the five months ended Feb. 28, coffee shipments climbed 14 percent from the same period a year earlier, according to the International Coffee Organization. That pace “is unlikely to be maintained in coming months, especially in light of reduced availability in Brazil,” the world’s largest producer, the London-based ICO said yesterday. Prices have almost doubled in the past year.
“Supplies are very tight,” said Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota. “People are willing to pay a premium to secure supplies.”
Arabica coffee for May delivery rose 7.65 cents, or 2.9 percent, to settle at $2.728 a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the commodity touched $2.7585, the highest since March 22.
Inventories in producing countries are at the lowest since records began, according to the ICO. Last month, Mexico’s exports fell 16 percent from a year earlier, the nation’s coffee association Amecafe said. The country mainly produces arabica beans.
In London, robusta-coffee futures for July delivery advanced $54, or 2.3 percent, to $2,443 a metric ton on NYSE Liffe.
Cocoa futures for July delivery dropped $12, or 0.4 percent, to $3,002 a ton in New York. Raw-sugar futures for July delivery gained 0.3 cent, or 1.2 percent, to 25.27 cents a pound on ICE.
In London, cocoa declined, and refined sugar rose.
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