Coffee futures tumbled to a seven- week low on concern that slowing economies will erode demand prospects amid ample supplies. Sugar and cocoa also slid.
In the third quarter, South Korea’s economy grew at the slowest pace in three years, while Spain’s unemployment climbed to a record, separate reports showed today. Coffee exports from Brazil, the world’s top grower, may rise 23 percent in October from a month earlier, Rio de Janeiro-based broker Flavour Coffee said in a report.
“The macroeconomic environment can only be negative for this market, not constructive,” Joe Scaduto, the president of JPS Commodities LLC, a broker in New York, said in a telephone interview. “The rains Brazil has been getting can only help next year’s harvest, and they are still holding more than half of this year’s crop.”
Arabica coffee for December delivery slumped 2 percent to settle at $1.5775 a pound at 2 p.m. on ICE Futures U.S. in New York, after touching $1.569, the lowest for a most-active contract since Sept. 6.
This week, the price fell 2.4 percent, the fourth straight decline and the longest slide since mid-June. The commodity has plunged 30 percent in 2012, the most within the 24 commodities tracked by the Standard & Poor’s GSCI Spot Index.
Raw-sugar futures for March delivery declined 0.9 percent to 19.35 cents a pound on ICE, extending this week’s drop to 4.3 percent.
Cocoa futures for December delivery fell 0.8 percent to $2,383 a metric ton. This week, the price sank 4.3 percent.
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