Coffee for July delivery was rising 1.9% to $2.96 a pound, up more than 100% over the past 12 months.
"In ICE Arabica coffee, the expected smaller Brazilian new season crop and the heavy rainfall in South America prompted speculators to bet on higher prices," said Rabobank analyst Luke Chandler. Heavy rainfall interferes with coffee pickings.
Chandler said net long positions in ICE coffee increased by 5,920 contracts to 35,293 contracts this week.
Coffee plays were trading in mixed territory. Starbucks(SBUX_) was falling 0.1% to $36.83, J.M. Smucker(SJM_) was rising 1.7% to $74.23, Green Mountain Coffee Roasters(GMCR_) was losing 0.8% to $65.40 and Kraft(KFT_) was adding 1% to $33.39.
Frozen concentrate orange juice futures were retreating as the markets became more relaxed about the orange supply. The U.S. Department of Agriculture's orange crop predictions for April remains largely unchanged, with Valencia crop estimates up slightly.
Previously, the USDA, during an initial crop forecast, indicated that 2010 to 2011 orange crop production would be much higher the previous year's, though lower than multi-year averages.
Waverly Advisors has initiated a short position in July frozen concentrate orange juice futures against a stop around $1.77. "With supply now stable or slightly improved, we are approaching this short position with a degree of confidence tempered by the volatile nature of the market and the knowledge that, as of April 1, as much as 85% of this harvest was still in the fields," said Waverly strategist Andrew Barber.
July frozen concentrate orange juice futures contracts were falling 1.1% to $1.65 a pound.
PepsiCo(PEP_), which owns the Tropicana orange juice brand, was rising 1.1% to $67.74, while rival Coca-Cola(KO_) was falling 1.9% to $66.43, after missing first-quarter estimates, and competitor Dr Pepper Snapple(DPS_) was flat at $38.72.
(Source: http://www.thestreet.com/story/11094379/1/coffee-futures-surge-oj-tumbles.html?cm_ven=RSSFeed)
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