Sept. 12 (Bloomberg) -- Coffee futures dropped as rains forecast in Brazil, the world’s largest producer, eased concerns about crop stress. Cocoa, cotton, orange juice and sugar gained.
Rains will return in major coffee-growing areas in Brazil from Parana to central and southern parts of Minas Gerais between Sept. 17 and 21, following hot, dry weather, Sao Paulo- based Somar Meteorologia said in a report e-mailed today. Prices have plunged 16 percent this year on abundant global supply, boosted by a bumper crop from the South American nation.
“There’s very good rains coming back to the main coffee belt,” Hernando de la Roche, a senior vice president at INTL FCStone in Miami, said by telephone.
Arabica coffee for December delivery dropped 0.2 percent to settle at $1.206 a pound at 2 p.m. on ICE Futures U.S. in New York.
Prices climbed 3.6 percent yesterday. Some speculators sold today to lock in gains, de la Roche said.
Cocoa futures for December delivery advanced 0.8 percent to $2,591 a metric ton in New York.
Precipitation in cocoa areas of Ivory Coast and Ghana, the world’s biggest producers, will total 0.1 inch (0.25 centimeter) to 0.5 inch over the next 10 days, below the typical 1.65 inches of rainfall a week at this time of year, Michael Thomas, a meteorologist at Commodity Weather Group, said in a telephone interview from Bethesda, Maryland.
Cotton futures for December delivery added 0.5 percent to 84.75 cents a pound on ICE. Orange-juice futures for November delivery jumped 3.2 percent to $1.3935 a pound, after reaching $1.40, the highest for a most-active contract since Aug. 22.
Raw-sugar futures for March delivery rose 0.5 percent to 17.73 cents a pound in New York, the sixth consecutive gain and the longest rally in almost a year.
--Editors: Thomas Galatola, Millie Munshi