28th July 2014
Arabica coffee passed 180 cents a pound in commodity trading on Friday as, once again, Brazil's long drought period at the turn of the year raises its head.
The bean hit a one-month high as dealers waited for more information about expected yields for next year's crop, with tension mounting that it could be as much of a blowout as the current one. ABN Amro reckons it'll stay around the 180-cent mark until more is known about the 2015/16 yield.
A lot of the sugar in commodity trading is also reliant on the Brazilian weather and it stayed in excess of 17 cents a pound on Friday. While there are some concerns that heavy rains in the second half of July may reduce the harvest, others are waiting for the peak production in August before making their move.
Finally, after hitting a three-year high on Thursday, cocoa cooled in the final session of last week, as speculation grew that the main West African crop could lead to a small surplus.
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