Arabica coffee fell to the lowest in almost five years in New York on ample supplies from Brazil and Colombia, the biggest growers of the beans
Brazil’s crop will be a record for a year in which trees enter the lower-yielding half of a two-year cycle, broker INTL FCStone Inc. (INTL) said in a report e-mailed yesterday. Conditions for the development of next year’s harvest appear to be “good,” it said. Farmers in Colombia will reap 10.6 million to 10.8 million bags in 2013, exceeding a target of 10 million bags, the Colombian Coffee Growers Federation said. Central America started harvesting last month. A bag weighs 132 pounds.
“The global coffee harvest kicked into high gear in Colombia, Central America and Brazil,” FCStone said. “The Brazilian ‘off-year’ crop is expected to come in a new record high and is one of the reasons prices are struggling.”
Arabica for December delivery fell 0.3 percent to $1.034 a pound by 5:57 a.m. on ICE Futures U.S. in New York after dropping earlier today to $1.031, the lowest for a most-active contract since Dec. 5, 2008. Prices are probably heading for $1, FCStone said. Robusta coffee for January delivery fell 1 percent to $1,468 a metric ton on NYSE Liffe in London.