By STEPHEN BERNARD (AP) 06-01-2010
NEW YORK — A tropical storm that battered Central America over the weekend drove the price of coffee higher Tuesday.
Guatemala and El Salvador were hit hard by a tropical storm in recent days, which could damage production or delivery of coffee.
“A lot of traders are looking at the possibility of fungus or disease affecting the crop,” said Tom Mikulski, a market strategist at Lind-Waldock. However, he cautioned that it’s still not clear that production would be affected.
Coffee for July delivery rose 2.3 cents, or 1.7 percent, to settle at $1.3655 a pound. Coffee fell earlier in the month because investors expect Brazil’s harvest to be plentiful, which would increase supply of the crop.
Copyright © 2010 The Associated Press. All rights reserved.
June 1 (Bloomberg) — Coffee futures climbed the most in four weeks after a tropical storm slammed Guatemala, Central America’s largest producer. Cocoa also gained.
Landslides and flooding killed at least 82 people and left 53 missing, David de Leon, a spokesman for Guatemala’s national disaster agency, said yesterday. Downed bridges and landslides cut off access for some coffee growers in western Guatemala, said Lucrecia Rodriguez, a deputy manager at Anacafe, an industry trade group.
“People are concerned about the conditions in Guatemala,” said Tom Mikulski, a senior market strategist at Lind-Waldock, a broker in Chicago.
Arabica coffee for July delivery rose 2.3 cents, or 1.7 percent, to $1.3655 a pound on ICE Futures U.S. in New York, the biggest gain for the most-active contract since May 3.
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