Coffee prices continued to drop Wednesday on news that more Colombian coffee beans will hit the market this year than
expected.
Arabica coffee for December delivery fell 3.1% to $1.2085 a pound on the ICE Futures U.S. Exchange.
Early this week, the National Committee of Coffee Growers in Colombia, the second largest producer of the mild flavored arabica bean, reported that 18% of beans don't meet quality standards compared to 10% on average and that it would lower its quality standards in order to get more beans to the market.
"I think the market will continue to juggle the news that originally came out on Monday from Colombia," said Hector Galvan, senior market strategist at RJO Futures in Chicago. "They are lowering their quality standards for beans and opening the door to the perception that it will bring more Coffee into the market."
Mr. Galvan said he thinks coffee prices will move lower, toward their last floor of $1.15 a pound.
In other markets, cocoa for December delivery fell 1.2% to $3,163 a ton, raw sugar for March dropped 0.4% to 14 cents a pound, cotton for December rose 0.9% to 64.35 cents a pound and frozen concentrated orange juice futures rose 0.9% to $1.331 a pound.
Arabica coffee for December delivery fell 3.1% to $1.2085 a pound on the ICE Futures U.S. Exchange.
Early this week, the National Committee of Coffee Growers in Colombia, the second largest producer of the mild flavored arabica bean, reported that 18% of beans don't meet quality standards compared to 10% on average and that it would lower its quality standards in order to get more beans to the market.
"I think the market will continue to juggle the news that originally came out on Monday from Colombia," said Hector Galvan, senior market strategist at RJO Futures in Chicago. "They are lowering their quality standards for beans and opening the door to the perception that it will bring more Coffee into the market."
Mr. Galvan said he thinks coffee prices will move lower, toward their last floor of $1.15 a pound.
In other markets, cocoa for December delivery fell 1.2% to $3,163 a ton, raw sugar for March dropped 0.4% to 14 cents a pound, cotton for December rose 0.9% to 64.35 cents a pound and frozen concentrated orange juice futures rose 0.9% to $1.331 a pound.
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