Coffee futures on Wednesday were slipping as one of the soft commodity's main growing regions is set to see rain slow down, according to Bloomberg.
The primary growing region of Indonesia, Southern Sumatra, is forecast to see increasingly dry weather as this week proceeds, according to meteorologists in Maryland. Deliveries from farms were delayed by rainfall.
"As the markets head into new multi-year lows, the specs and funds just seem to have less excuse not to sell," states a Wednesday email to the news service authored by brokerage ABN Amro Markets U.K. Ltd. "Roasters, having priced and extended cover above, are now picking away at attractive levels but clearly without the ability to support prices. The pain is clearly to the downside with origin stops having been elected today."
At 11:34 a.m. on Wednesday, coffee futures dropped 2.62 percent, a 0.034-cent loss to $1.262 per pound.
Reuters reports supplies of Arabica coffee beans were strong, which also helped pull down prices as the soft commodity also was pinched by the prospect of Brazil conducting a sizable off-year crop.
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