Coffee Prices Climb in N.Y. as Weaker Dollar Lifts Demand; Cocoa Mixed

Coffee prices rose in New York, heading for the longest streak of gains since June, as the dollar fell, boosting the appeal of some commodities. Cocoa was mixed.

The greenback dropped against a basket of six major currencies after closing higher the previous five sessions. The Reuters/Jefferies CRB Index of 19 raw materials gained as much as 0.5 percent. Coffee climbed 6.1 percent last week on speculation that too much rain will hurt crops in Brazil and Colombia, the world’s largest producers of arabica beans.

“The lower dollar is giving coffee a little bit of bid,” said Hector Galvan, a senior trading adviser at RJO Futures in Chicago. “There’s also some speculative buying” following last week’s increases, he said.

Arabica coffee for December delivery rose 1.75 cents, or 1 percent, to $1.7935 a pound at 9:49 a.m. on ICE Futures in New York. The six-day climb is the longest since June 15.

Before today, the commodity gained 31 percent this year and reached $1.815 on Aug. 2, the highest level since Feb. 6, 1998.

Coffee may trade between $1.60 and $1.80 before the bulk of the Brazilian harvest becomes available next month, Galvan said.

On the Liffe exchange in London, robusta-coffee futures for November delivery dropped $15, or 0.8 percent, to $1,753 a metric ton.

Arabica coffee is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa.

Cocoa futures for December delivery were up $7, or 0.2 percent, to $2,892 a ton in New York, after reaching $2,853, the lowest level for a most-active contract since May 21.

In London, cocoa futures for September delivery slipped 15 pounds, or 0.7 percent, to 2,094 pounds ($3,275) a ton.