Soft Commodities Price Watch: Robusta Coffee Hits Six-Week Low

on Aug 22, 2013
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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.”

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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.

When its currency weakens, farmers tend to ship more sugar, as it increases the value of overseas income at Brazilian exporters when repatriated.
Among other soft commodities, the cocoa price for delivery in December today rose 0.4 percent to £1,630 a tonne on NYSE Liffe and 0.2 percent to $2,455 a tonne on ICE.
The cotton price today moved higher as investors returned to the market to seek cheap valuations after prices plunged almost 10 percent over the previous two sessions. The December contract on ICE traded at $0.8484 a pound, up 0.7 percent, after settling 5.2 percent down yesterday.

**Grains Paring Gains**
Grain futures edged lower today, as market players continued to monitor U.S. crop conditions and weather forecasts for the Midwest and Great Plains-region.
!m[Grain Futures Edge Lower after Yesterday’s Gains](/uploads/story/5030/thumbs/pic1_inline.jpg)
On the Chicago Board of Trade (CBOT), the soybean price for November delivery traded at $12.9185 a

bushel, down 0.98 percent on the day, after ending 1.05 percent higher in the last trading session.
Elsewhere on the CBOT, corn futures for December delivery traded 1.03 percent lower at $4.7825 a bushel, after rising 1.65 percent yesterday. The wheat price also declined today, paring the previous day’s 0.5-percent gain. The contract for December delivery traded at $6.4575 a bushel, 0.54 percent down on the day.

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