Coffee prices have climbed for seven consecutive days, rising nearly sixteen
cents per pound (+12 percent).
Much of the rally has been driven by weather in Brazil, the source of one-third of the world's coffee. The approaching Southern Hemisphere winter dropped temperatures into the 30s in Brazil's largest coffee-growing region. Though rare, freezing temperatures can damage coffee trees, reducing production. The threat of cold weather and ongoing concerns about a leaf fungus prevalent in Central American coffee-growing regions had the market jittery enough to push prices to a two-month high.
Some coffee traders are waiting to see whether the market can perk up over $1.50 per pound, which might prompt another rush of buying. As of midday yesterday, coffee for delivery in July was worth $1.46 per pound.
CORN CRUSHED LOWER
Weather across the Corn Belt began to break this week, allowing farmers to start planting corn in earnest, catching up significantly. Some analysts are projecting that as much as a quarter of this year's corn crop was planted during the last week. Although still behind pace, the fast planting increased the chances that U.S. farmers will plant a record corn crop this year.
In addition to the optimistic weather outlook, corn prices were pulled lower by a U.S. Department of Agriculture report released yesterday morning. That report showed increases in corn production from Brazil and Argentina, two major suppliers who compete with American farmers for export business.
After the report, July corn prices fell as low as $6.25 per bushel, the lowest price in two weeks.
YEN PLUNGES TO NEW LOW
The Japanese yen is worth less than 1 U.S. cent for the first time in over three years. The Japanese currency has been in a near free-fall in recent months because of the actions taken by the Bank of Japan to stimulate the Japanese economy, which has been stagnant for nearly two decades.
During the last year, the yen has dropped 24 percent in value against the U.S. dollar, making Japanese goods such as cars and electronics cheaper for U.S. consumers, which has been bolstering profits for Japanese companies. Conversely, prices for imported goods in Japan, such as gasoline and food, have been rising, prompting some concern about inflation in that nation.
As of midday yesterday, the yen was worth only 0.984 cents, the lowest value since October 2008.
If you are getting this message, it's because your browser is blocking cookies. For free access to this full story, please enable cookies in your web browser.
Opinions are solely the writer's. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at 800-411- 3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.
[copyright] 2013 Columbia Daily Tribune . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Most Popular Stories
- Top Hispanic Tech Companies Push for the Top
- 5 Notable Hispanic Technology Executives
- Taco Bell Rings Up Breakfast Menu
- Russia, Crimea Discuss Referendum
- California Establishes Center for Coffee Study
- China Urges Malaysia Flight Emergency Response
- Visa, MasterCard Team Up to Focus on Payment Security
- For Obama, a Last Stab at Improving Ties with Capitol Hill
- Sunday Starts Daylight Saving Time
- 'Holy grail of guitars' OM-45 Deluxe Available in in NY Auction