NEW YORK-Arabica-coffee prices slipped Wednesday as traders took profits from
a four-session rally.
Arabica beans for delivery in May on the ICE Futures U.S. exchange were down
2.7% at $1.9130 a pound. Futures prices had gained almost 14% over the previous
four sessions on concerns that Brazil's worst drought in decades would
translate to a smaller and lower-quality crop from the world's biggest coffee
The National Coffee Council recently reduced its estimates for the 2014 and
2015 crops, citing dry weather in Brazil's coffee-producing belt, especially in
January and February. The CNC expects this year's crop to range from 40.1
million to 43.3 million 60-kilogram bags of coffee beans, down from its earlier
estimate of 44 million bags.
But the higher prices are encouraging investors to cash in on the run-up and
for growers to sell their crop, said Jack Scoville, a vice president at
brokerage Price Futures Group in Chicago.
The rally "has brought out some selling," he said. "The weather in Brazil is
still a major issue, but their harvest is going to start."
In other markets, orange-juice concentrate and cotton futures were firmer
ahead of the U.S. Department of Agriculture's monthly supply-and-demand report,
scheduled for release at noon EDT.
U.S. cotton farmers harvested their smallest crop in four years, according to
the USDA, and domestic supplies of the fiber are likely to be even smaller than
expected at the end of this season in July, according to a survey of analysts
by The Wall Street Journal. Cotton for delivery in May was up 0.3% at 92.03
cents a pound.
Orange-juice concentrate for May was 0.3% higher at $1.5595 a pound. The USDA
expects growers in Florida to reap their smallest crop in 24 years.
The May contract for raw sugar was 0.9% lower at 17 cents a pound, while
cocoa for May was up 0.8% at $3,015 a ton.
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(END) Dow Jones Newswires
April 09, 2014 10:15 ET (14:15 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
040914 14:15 -- GMT