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Showing posts from February 10, 2015

Coffee sinks to near one-year low

Supply Outlook Shifts as Weather Conditions in Brazil Support Healthy Harvest By  Tatyana Shumsky The Wall Street Journal February 10, 2015 Coffee prices tumbled to the lowest level in nearly a year on Tuesday as investors recalibrated their expectations for supplies amid signs that weather conditions in Brazil are supporting a healthy harvest. Arabica coffee for March delivery fell 8.20 cents, or 4.9%, to settle at $1.5940 a pound on the ICE Futures U.S. exchange. This was the lowest close since Feb. 18, 2014, and the biggest one-day percentage drop since Nov. 21. The weather in Brazil has been better than some investors had expected. Intermittent rainfall is keeping coffee trees hydrated and on track for a healthy crop, said James Cordier, president of Liberty Trading Group in Tampa, Fla. Brazil is the source of roughly half of the world’s arabica beans, a type of coffee prized for its mild flavor. Some investors had been betting on a repeat of 2014, w...