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DJ ICE Coffee Review: Up
As Shorts Cover; Equities, Oil Rise
Other Topics:
Ethiopian Coffee
Dow Jones Commodities News via Comtex
October 17, 2008
Arabica coffee futures reached two-day highs on ICE
Futures U.S. Friday, retracing Thursday's losses as
shorts covered while other commodities and the stock
market advanced.
Procter & Gamble (PG) Folgers lowered ground prices by
10 cents per 10.3- to 11.5-ounce can or 3.5%, effective
immediately, reflecting lower green values in recent
weeks, the company said Friday.
December arabica coffee settled 265 points higher at
$1.1560 a pound, with March gaining 260 points to
$1.2045.
"We added a little to morning gains this afternoon," a
New York desk trader said. "Shorts covered since the
stock market and oil are up and the dollar was down.
It's positive that we managed to stay above last week's
contract lows this week."
ICE futures volume at 2 p.m. EDT was estimated at 11,164
lots, and in options, 3,108 calls and 2,664 puts traded,
the exchange said.
In addition to its ground price cut, Folgers lowered
instant coffee prices by 3 cents per ounce Friday.
Folgers spokeswoman Jen Becker said "this price decrease
is due to the volatility of green coffee prices over the
last 30 days. The 30-day moving-average composite price
of NY 'C' arabica and London robusta markets has
declined 10 cents per pound versus our previous price."
When green-coffee market changes are significant, the
company adjusts its list prices. Folgers last adjusted
prices in late March.
New Orleans has stayed competitive as a coffee port
after Hurricane Katrina and continues to benefit from an
early 1990s decision that turned Mississippi River grain
elevators into a modern arrival center for beans,
industry members said at the National Coffee Association
conference in New Orleans this week. Thomas Westfeldt,
president of importer Westfeldt Brothers Inc., said
"everyone is back here, including Folgers, Sara Lee,
American Coffee and many other roasters, along with the
importers, warehouses, banks and truckers," after
Katrina struck three years ago.
The port, which is second to the New York-New Jersey
terminals in U.S. coffee receipts, brings in more than
250,000 tons of foreign beans yearly, much of which is
for Folgers, owner of the world's biggest roasting plant
in East New Orleans.
Late last week, New Orleans-based Reily Foods Co., maker
of Luzianne, CDM and JFG coffee brands, said it acquired
century-old American Coffee Co., producing French Market
blend.
J.M. Smucker Co. (SJM) this summer agreed to acquire
Folgers and said it plans to continue operating the New
Orleans plant and distribution facility. P&G will split
off Folgers, completing the transaction early this fall.
Last week, Smucker said P&G had proceeded with an
exchange offer for P&G stock.
ICE December finds support at $1.1355-$1.1350, $1.1325,
$1.13, $1.1295 and $1.1275, with resistance at $1.1635,
$1.1645-$1.1650, $1.1675, $1.1690 and $1.17.
ICE Change Range at 3:15pm ET Liffe Change Dec 115.60 up
2.65 113.55-116.35 Nov 1740 up 40 Mar 120.45 up 2.60
118.50-121.10 Jan 1794 up 33
-By Susan Buchanan, Dow Jones Newswires; 504-371-5461;
susan.buchanan@dowjones.com
(END) Dow Jones Newswires
10-17-08 1537ET
For full details on Procter & Gamble Co (PG) click here.
Procter & Gamble Co (PG) has Short Term PowerRatings of
5. Details on Procter & Gamble Co (PG) Short Term
PowerRatings is available at This Link. |
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