Coffee fell in New York, reversing gains yesterday, as growing areas in leading producer Brazilhave so far escaped freezing temperatures. Sugar slid.
The lowest temperature in growing regions of northeastern Parana state has been 1 degree Celsius (34 degrees Fahrenheit), Celso Oliveira, a meteorologist with Sao Paulo-based weather forecaster Somar Meteorologia, said by phone earlier today. In southwestern Sao Paulo coffee areas it fell to 3 degrees Celsius. Temperatures may fall further as they usually reach their lowest by 7:30 a.m. local time.
“We are waiting for final confirmation, but the early reports are showing that there was little if any cold weather damage,” Alex Parry, a broker at ABN Amro Markets U.K. Ltd., said by e-mail today, commenting on Brazilian growing areas. “This is being reflected in the flat price.”
Arabica for delivery in September tumbled 1.4 percent to $1.243 a pound by 5:51 a.m. on ICE Futures U.S. in New York. Prices gained 2.1 percent on July 22 and 0.6 percent yesterday. Robusta coffee for September delivery fell 1 percent to $1,911 a metric ton on NYSE Liffe inLondon.
The state of Parana is forecast to produce 1.7 million bags of coffee this year, while total production in Brazil is estimated at 48.6 million bags, according to data from the government’s crop-forecasting agency, known as Conab. Minas Gerais, the top growing state, is set to produce 25.5 million bags and Sao Paulo 4.3 million bags, the data showed.
Southern Minas Gerais and the Mogiana regions have escaped cold weather, Somar’s Oliveira said. A bag of coffee usually weighs 60 kilograms (132 pounds).
Raw sugar for delivery in October was down 0.1 percent to 16.33 cents a pound on ICE. White sugar for October delivery was little changed at $475.10 a ton on NYSE Liffe.
Sugar cane crushing in Brazil’s center south, the main growing region of the world’s biggest producer, may have been 40 million to 42 million tons in the first half of July, Michael McDougall, head of the Brazil desk at Newedge in New York, said in a report e-mailed yesterday. The amount of cane directed to making sugar may be 42.5 percent to 43 percent, he said.
Industry group Unica will release figures at 2 p.m. Sao Paulo time today.
Cocoa for September delivery rose 0.2 percent to 1,601 pounds ($2,457) a ton in London. Cocoa for September delivery was little changed at $2,360 a ton New York.