Soft Commodities Price Watch: Robusta Up on Reserves Worries

on Aug 27, 2013
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iNVEZZ.com Tuesday, August 27th: Robusta coffee today climbed for the first time in eight sessions on speculation that stockpiles will continue to fall, prompting roaster buying before the next crop starts in October in top-grower Vietnam, analysts have noted.

According to the average of 10 trader estimates compiled by Bloomberg, Robusta coffee inventories in warehouses monitored by the NYSE Liffe exchange will tumble 34 percent to 52,000 metric tonnes by the end of 2013, the lowest level since May 2000. Adding to stockpile concerns, rain in the largest growing regions of Indonesia, the third-biggest producer of the variety used in espresso, has been as much as twice the 30-year average since April, forecaster MDA Weather Services has said.

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The Robusta coffee price for delivery in November on NYSE Liffe in London today was 0.6 percent higher at $1,782 a tonne. The market was closed yesterday for a public holiday. Arabica coffee for December delivery on ICE Futures U.S. in New York fell 0.5 percent to $1.1715 a pound, after rising 0.6 percent in the previous trading session.
Among other soft commodities, the white sugar price for October delivery on NYSE Liffe gained 0.2 percent to $484.20 a tonne, while raw sugar for the same month of delivery slid 0.2 percent to $0.1657 a pound on ICE. Cocoa for December delivery was 0.3 percent higher at £1,641 a tonne in London and 0.7 percent lower at $2,463 a tonne in New York.

**Grain Futures Ease After Rally**
U.S. grain futures today traded lower, as investors cashed out of the market to lock in gains from yesterday’s sharp rally that took prices to multi-month highs. Market participants also continued to focus on weather conditions and crop prospects in the U.S.
Corn swung between gains and losses after climbing the most in more than a year, as investors weighed the outlook for hot, dry weather in the U.S. Midwest growing region against prospects of a record crop.

!m[Grain Futures Decline on Profit Taking ](/uploads/story/5127/thumbs/pic1_inline.jpg)
As of 15:09 BST the corn price for December delivery on the Chicago Board of Trade (CBOT) was 0.05 percent down at $5.0025 a bushel. Earlier during the trading session the contract fell as much as 0.9 percent, paring yesterday’s gains, when the contract settled 6.5 percent higher at $5.0040 a bushel, the highest price level since July 25.
Among other grains, the wheat price for delivery in December today lost 0.2 percent to $6.6525 a bushel. Soybeans for November delivery today fell 0.2 percent to $13.8625 a bushel after prices yesterday jumped 4.6 percent to settle at $13.895, marking the biggest daily advance since October 2011 and the highest price level at close since June 6.

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