Brazil slump lifts coffee futures

3 December 1999



Brazil slump lifts coffee futures

COFFEE futures hit a six-month high on the London and New York markets as traders responded to expectations of reduced output in Brazil.

The benchmark January contract traded on the London International Financial Futures Exchange reached $1,537/t, up $67 on Wednesdays close.

Dry weather in Brazil has led analysts to cut their crop forecasts. Estimates for next years harvest have come down to 25 million to 30m 60kg bags from a range of 40m to 42m bags.

A harvest of 25m could swing world supplies into deficit.

• Frost-free Brazil hits coffee futures , FWi, 17 August, 1999
• Coffee jumps on weather report, FWi, 20 May, 1999
• Coffee futures recover, FWi, 27 May, 1999
  
• Financial Times 03/12/99 page 32