Coffee Futures Rise as Rain Delays Harvest; Sugar Advances
Coffee futures rose for a second straight session on speculation that rain will slow the harvest in Brazil, the world’s largest producer. Sugar also gained.
Heavy precipitation will cover Parana and the southern part of Sao Paulo state this week, according to forecaster Somar Meteorologia in Sao Paulo. The Mogiana region and the southern part of Minas Gerais state, where nearly half of Brazil’s coffee is grown, will get more scattered rainfall, Somar said today in an e-mailed report. Plantations are located mostly in Minas Gerais, Sao Paulo and Parana. Brazil is expected to produce 48.6 million bags in 2013, the country’s crop-forecasting agency, known as Conab, said on May 14.
“We’ll have a harvest delay because we have rain in some parts of Brazil that is going to slow down harvesting right now,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview.
Arabica coffee for September delivery rose 0.7 percent to settle at $1.2015 a pound at 2 p.m. on ICE Futures U.S. in New York. Prices rallied 0.8 percent on June 21, after touching an almost four-year low of $1.171 on June 20. Trading was 60 percent lower than the average over the past 100 days for this time of day, according to data compiled by Bloomberg.
Raw-sugar futures for October delivery climbed 1.2 percent to 17.14 cents a pound on ICE. Trading was 42 percent higher than the 100-day average for this time of day, according to data compiled by Bloomberg.
Heavy rains this week from Rio Grande do Sul to Mato Grosso do Sul and Sao Paulo will disrupt fieldwork across cane areas, Somar said. The country is also the biggest producer and exporter of sugar.
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