iNVEZZ.com Thursday, August 22nd: Robusta coffee price today fell to a six-week low on speculation that rain in Vietnam, the world’s largest producer of the variety used in espresso, will benefit the crop starting October 1.
According to data released by the Dak Lak Meteorology and Hydrology Department, Vietnam’s main coffee-growing region had 35.1 millimetres of rain in the period August 11-20, compared to 20.4 millimetres a year earlier. Thus, farmers in Vietnam may reap a record crop next season, Commerzbank AG said in a report today.
Robusta coffee stockpiles with a valid grading certificate in warehouses monitored by NYSE Liffe were 83,770 tonnes on August 5, down from 98,250 tonnes two weeks earlier. The exchange will update inventory figures later today and according to BGC Partners LLC in London, the new data is expected “to show a decent draw down, albeit perhaps not as aggressive as the previous two occasions.”
Robusta coffee for November delivery on NYSE Liffe in London today touched $1,084 a tonne, the lowest since July 8. On ICE Futures U.S. in New York, Arabica coffee for delivery in December gained 0.3 percent at $1.1755 a pound.
Raw sugar for delivery in October fell 0.1 percent $0.1631 a pound in New York, while white sugar for delivery in the same month decreased 0.1 percent at $483 a tonne in London. Sugar prices came under pressure from the Brazilian real, which traded near a four-and-a-half-year-low against the U.S. dollar, encouraging growers to sell their crops. Brazil is the world’s largest producer and exporter of sugar.