DECEMBER 13, 2013
Reduced supplies prompted coffee futures to push ahead on Friday as the soft commodity marked a second consecutive trading session of gains and pushed to its top value in about 90 days, according to Bloomberg.
Bean stockpiles in warehouses followed by the exchange dropped more than expected, underscoring concerns about supplies being able to meet demand. Sugar futures performed the inverse of coffee futures as the sweetener lost value during the Friday trade session.
“The range of estimates were wide from anywhere between 400 to 1,000 lots over the fortnight,” states a Friday email authored by broker Alex Parry with ABN Amro Clearing Bank NV, according to Bloomberg. “This number is sizably above the market expectation and should be supportive.”
At 9:43 a.m. on Friday, coffee futures rose 1.93 percent, a 0.0215-cent lift to $1.1345 per pound. At 9:42 a.m., sugar futures edged down 0.18 percent, a 0.0003-cent slide to 0.1627 per pound.
Reuters reports Robusta coffee, which mainly is grown in Vietnam and then traded in London, benefited from a drawdown among exchange-certified inventories within the soft commodity.