Sept. 20 (Bloomberg) -- Coffee posted the biggest weekly loss in almost a month on an improving crop outlook in Brazil and Colombia, the world’s biggest arabica suppliers. Cocoa and cotton slid, while orange juice gained and sugar was unchanged.
Rains in Parana, Sao Paulo, Minas Gerais and Espirito Santo in Brazil, the largest coffee producer, will spur the first big flowering of the season, Somar Meteorologia said Sept. 18. The 2014 arabica harvest may exceed 38 million bags, compared with 36 million this year, the forecaster said. Output in Colombia will rise 20 percent to 12 million bags next year, the Association of Coffee Exporters said yesterday. A bag weighs 60 kilograms, or 132 pounds.
“We’re seeing better weather in some of Brazil’s key growing areas, and that’s getting the 2014 crop off to a good start,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said by telephone. “Improved production out of Colombia will mean there is going to be more coffee in a market that is already quite well supplied.”
Arabica coffee for December delivery fell 1 percent to settle at $1.1465 a pound at 2 p.m. on ICE Futures U.S. in New York. Prices tumbled 4.5 percent this week, the biggest drop since the five days ended Aug. 23.
Cocoa futures for December delivery declined 0.8 percent to $2,608 a metric ton in New York. Cotton futures for December delivery slid 0.2 percent to 84.52 cents a pound.
Orange-juice futures for November delivery rose 0.2 percent to $1.2555 a pound. Prices dropped 10 percent this week, the biggest loss since January. Raw-sugar futures for March delivery were unchanged at 17.74 cents a pound.
--Editors: Thomas Galatola, Millie Munshi