Jan. 23 (Bloomberg) -- Arabica-coffee futures fell the most in a week on signs of increasing worldwide supplies. Sugar and cocoa prices rose.
Global coffee output will be 132.4 million bags in the season that started in October, up 3.8 million bags from the December estimate, the International Coffee Organization said last week. Harvests are accelerating in Central America, Hernando de la Roche, the director of futures at INTL FCStone in Miami, said in a telephone interview. A bag weighs 60 kilograms, or 132 pounds.
Producers “have coffee to sell against March and May futures, and the industry may be waiting for prices to fall further” before buying, de la Roche said.
Arabica coffee for March delivery fell 2.6 percent to settle at $2.1945 pound at 2 p.m. on ICE Futures in New York, the biggest drop for a most-active contract since Jan. 13. The commodity has declined 3.3 percent in January.
The market has been unable “to hold onto anything to the upside,” Drew Geraghty, a broker at ICAP Futures LLC in Jersey City, New Jersey, said in a telephone interview. “There seems to be short selling from funds,” or bets that prices will drop, he said.
Raw-sugar futures for March delivery rose 0.3 percent to 24.96 cents a pound in New York. The price advanced for the sixth straight session, the longest rally since November 2010. The commodity has climbed 7.1 percent in January.
On NYSE Liffe in London, refined-sugar futures rose for the 12th straight session, the longest rally since 1989.
Cocoa futures for March delivery advanced 0.4 percent to $2,269 a metric ton in New York. The price has climbed 7.6 percent this month.
In London, robusta-coffee futures and cocoa dropped.
--Editors: Patrick McKiernan, Millie Munshi
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