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Commodities : Tuesday, Sept. 16, 1986 : Coffee Futures Prices Rise

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From Associated Press

Coffee futures prices marked the onset of cooler weather Tuesday by advancing the limit allowed for daily trading.

The two nearby delivery months, on which there are no limits, gained more than twice the 4 cents-a-pound limit on the Coffee, Sugar and Cocoa Exchange in New York.

In some other markets, crude oil slumped below $14 a barrel for the first time since early August and cattle futures moved higher.

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The coffee advance was a technical breakout as prices held at the $2 a pound level, said Sandra Kaul, an analyst in New York with Shearson Lehman Bros. However, the fundamental factors behind this have been developing in recent weeks as the season for heavy coffee consumption approaches.

“Stock levels have been high and this had allowed roasters to be out of the market during recent advances, hoping prices would come back down,” Kaul said.

But with the stock drawdown and seasonal demand picking up, they are now being forced into the market to do some buying, she said. An indication of the increased need, Kaul said, was the trade turning in warehouse receipts to withdraw 169,000 132-pound bags of coffee.

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