Yahoo Finance Arabica Has Biggest Jump in Three Weeks Ahead of July Delivery
(Bloomberg) -- Arabica coffee futures jumped the most since late May in New York ahead of the expiration of July futures, with a rare premium for prompt supplies hitting the highest in over a month.
Most Read from Bloomberg
CDK Tells Car Dealers Their Systems Likely Offline Several Days
Putin’s Hybrid War Opens a Second Front on NATO’s Eastern Border
Hedge Fund Talent Schools Are Looking for the Perfect Trader
The move occurs as Thursday is the first notice day, when holders of futures must notify counterparts about their intention to access physical delivery against the contract. That is seen spurring some traders to cover short positions, even as the amount of outstanding contracts for that expiration is low.
The most-active arabica coffee futures climbed as much as 4.4%. A key spread between July and September futures jumped, recently shifting from a discount to a premium.
Investors are also watching the weather at top producing country Brazil, said Thiago Cazarini, president of Cazarini Trading Co. While common for this time of year, dryness and low temperatures during the country’s winter can raise concerns over future supplies and fuel volatility.
Hot and dry weather in Vietnam has also fueled concerns about the next harvest in the world’s largest exporter of robusta beans, the variety used in instant coffee. Vietnam is expecting isolated showers, which could lead to only localized areas seeing “a little bit of cherry growth,” Maxar reported.
--With assistance from Mumbi Gitau.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
