Arabica coffee dropped the most in three weeks as favorable weather may aid crops in Brazil, the world’s largest producer and exporter. Sugar and cocoa fell.
Coffee-growing areas in Brazil won’t face the risk of frost in the next 15 days, forecaster Somar Meteorologia said yesterday. Prices have tumbled 17 percent since touching the highest since May 1997 last month amid an improving outlook for global production.
“Prices are under pressure as there are no predictions of a frost in Brazil,” said Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago. “We are also witnessing some technical selling.”
Arabica coffee for July delivery fell 8.65 cents, or 3.3 percent, to settle at $2.5595 a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest drop since May 11. Prices slumped 12 percent last month, the most since June 2009.
The commodity touched $3.089 on May 3, the highest in almost 14 years, as adverse weather threatened crops in Colombia, the second-biggest grower.
Raw-sugar futures for July delivery declined 0.72 cent, or 3.1 percent, to 22.46 cents a pound on ICE, the first loss since May 23.
Cocoa futures for July delivery tumbled $46, or 1.5 percent, to $2,953 a metric ton in New York.
In London, robusta coffee, refined sugar and cocoa retreated.
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