Coffee prices fell Friday on expectations that Brazilian growers will produce a bountiful harvest later this year.
Coffee for May delivery fell 2.95 cents to finish at $1.8235 per pound. The price has fallen 19.3 percent this year on the prospect that global inventories could expand.
Sterling Smith, a market analyst at Country Hedging LLC, thinks that the price could fall into a range between $1.65 per pound to $1.70 per pound, but noted that could be offset by strong overall demand.
Despite the falling futures prices, consumers aren’t likely to get a break at the retail level because manufacturers are paying higher costs to produce and ship their products, he said.