The leaf rust (roya) epidemic, while incredibly damaging to farms and farmers throughout Central America, is having little effect on the global market, according to a New York stock exchange report from Bloomberg:
Coffee fell for a second day inNew York on speculation that even leaf rust endangering Latin American crops won’t be enough to dent a glut of stockpiles.
Beans in warehouses monitored by ICE Futures U.S. are the highest since March 2010.
Arabica futures for May this morning dropped just shy of 1 percent, to $1.421 a pound. “The roya issues have not been enough yet to put a serious bid underneath the market as the trader will likely continue to be skeptical about the matter for the time being,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, told Bloomberg.
The full story: Bloomberg
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