Coffee futures capped the worst rout in more than four decades as wet weather signaled bigger crops than forecast in Brazil, the world’s largest grower. Brazil may collect a record crop in 2014 after “perfect” weather, Sao Paulo-based Somar Meteorologia said yesterday.
The Colombian Coffee Growers Federation estimates that farmers may reap the biggest harvest since 2007. Global production is set to exceed demand for a fourth straight season, according to the U.S. Department of Agriculture. The glut is helping to cut costs for Starbucks Corp. (SBUX) and Kraft Foods Group as coffee futures tumbled 26 percent in 2013.
Arabica coffee for delivery in December fell 0.6 percent to settle at $1.0695 a pound at 2 p.m. on ICE Futures U.S. in New York, after touching $1.066, the lowest since March 2009. Prices fell for 11 straight sessions, the longest slump since at least 1972.