Coffee futures rise as supplies tighten

March 11, 2009 by
Filed under: News 

Coffee future prices rose on speculation that a declining dollar will boost demand as the global bean supplies tighten. The International Coffee Organization said on Tuesday that the global output of coffee will be 127.8 million bags in the year ending Sept. 30, less than last month’s forecast of 133.4 million bags. A coffee bag weighs 60 pounds, or 132 kilograms. Arabica-coffee futures for May delivery rose 1.1 cents, or 1 percent, to $1.0705 a pound on ICE Futures U.S. in New York, the biggest gain for a most-active contract since March 4. The commodity dropped 30 percent in the past year. Raw-coffee shipments by Brazil in the first 10 days of March fell 7.9 percent from a month earlier, according to preliminary figures on the Web site of the nation’s exporter council. Brazil and Colombia are the two biggest producers of arabica beans. Robusta coffee for May delivery rose $3, or 0.2 percent, to $1,439 a metric ton on the Liffe exchange in London.

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