Worries about the sovereign debt crisis pushed down coffee futures Tuesday amid the dollar's gaining strength as the euro dipped, Bloomberg reports.
Finance ministers of European Union member nations did not strike the possibility of Greece easing into a temporary default as a method of restricting the debt scourge that now has enveloped Italy. The euro's dive in value has pushed up the price of the U.S. dollar.
"With the fears of default on debt and new potential bailouts now surrounding Italy and possibly Spain, the markets have been affected by sudden strength in the U.S. dollar," states a Tuesday report by Sucden Financial analyst Nick Penney.
At 8:06 a.m. on Tuesday, coffee futures fell 0.71 percent, a 0.0185 cent drop to $2.572 per pound.
The Business Recorder reports exporters of coffee in Vietnam are coping with reduced domestic stocks by postponing the shipment of 40,000 tons of coffee, which is almost 670,000 bags. That combined with the cancellation of 12,000 tons from Indonesia is likely to mount pressure on buyers given Indonesia and Vietnam are the globe's top growers of robusta coffee beans.
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