By Ron Day
Bloomberg
June 8, 2007
Coffee fell in New York after Brazil and Colombia sold beans to take advantage of a three-week rally.
Futures had jumped 15 percent since May 1 to a three-month high on June 4. Brazil, the world's biggest coffee grower, and Colombia, the third-largest, are locking in prices after some sales by speculators, said George Saffadi, a trader with Olam Americas Inc. in White Plains, New York.
``Brazil and Colombia are coming to market,'' Saffadi said. ``They have coffee to sell and they are hedging.''
Coffee for July delivery fell 2 cents, or 1.7 percent, to $1.1495 a pound on the New York Board of Trade at 12:24 p.m.
Colombia, which is harvesting its smaller mid-crop, is boosting production to meet increased demand from former Soviet Union countries as Brazil's output declines.
Brazil's production dropped in the current season after trees entered the slower half of a two-year cycle and dry weather hindered flowering.
Vietnam is the second-biggest coffee grower.
To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net .
Bloomberg
June 8, 2007
Coffee fell in New York after Brazil and Colombia sold beans to take advantage of a three-week rally.
Futures had jumped 15 percent since May 1 to a three-month high on June 4. Brazil, the world's biggest coffee grower, and Colombia, the third-largest, are locking in prices after some sales by speculators, said George Saffadi, a trader with Olam Americas Inc. in White Plains, New York.
``Brazil and Colombia are coming to market,'' Saffadi said. ``They have coffee to sell and they are hedging.''
Coffee for July delivery fell 2 cents, or 1.7 percent, to $1.1495 a pound on the New York Board of Trade at 12:24 p.m.
Colombia, which is harvesting its smaller mid-crop, is boosting production to meet increased demand from former Soviet Union countries as Brazil's output declines.
Brazil's production dropped in the current season after trees entered the slower half of a two-year cycle and dry weather hindered flowering.
Vietnam is the second-biggest coffee grower.
To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net .
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