Coffee futures decline on US consumer confidence

Coffee futures in New York fell from the highest price in almost three weeks after a report showing an unexpected drop in US consumer confidence eroded the appeal of some commodities. Arabica-coffee futures for May delivery fell 1.25 cents, or 0.9 per cent, to $1.325 a pound on ICE Futures US in New York. Earlier, the price rose to $1.352, the highest level for a most- active contract since February 22. Global consumption may increase 1.5 per cent to 134 million bags in 2010, according to the International Coffee Organisation. Exports of Colombian coffee fell 29 per cent in the first four months of the marketing year that began October 1, as the country’s production dropped for a second year, the ICO said. Colombia is the world’s largest supplier of arabica coffee after Brazil. Coffee rose 1.6 per cent this week, after declining in the previous two weeks. The commodity has gained 20 per cent in the past year as global supplies tightened. Output in Colombia will probably be 9 million bags this season, “still far from recovering its 2007-2008 production level” of 12.5 million bags, Osorio said. The country produced 8.66 million bags in the 2008-2009 marketing year. A bag weighs 60 kilograms (132 pounds).