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Showing posts from August 29, 2010

Coffee Futures Are Near a 13-Year High

By Tom Sellen The Wall Street Journal August 30, 2010 KANSAS CITY, Mo.—Coffee futures remain close to a 13-year high, as tight supplies and the prospect of dry weather hurting next year's Brazilian crop have sent roasters scrambling to secure beans. Roasters are looking for top-quality arabica coffee beans, and supplies from Colombia—the largest producer of the beans—and Central America won't begin hitting the market in earnest until November and December. Brazil is on pace to harvest a record crop this year, though global demand is also strengthening. December coffee futures reached a 13-year high of $1.8865 a pound last Monday, as speculative investors jumped into a market that already was rising as coffee roasters fretted over inadequate supplies. Prices then dived the next day as investors questioned the steep gains and as Brazil's possibly record-setting crop eased supply fears. Since then, the market has gradually clawed its way back. On Friday, coffee for ...