Coffee falls on expectations for good Brazilian harvest; other commodity prices are mixed

Coffee prices fell Friday on expectations that Brazilian growers will produce a bountiful harvest later this year.

Coffee for May delivery fell 2.95 cents to finish at $1.8235 per pound. The price has fallen 19.3 percent this year on the prospect that global inventories could expand.

Brazil’s crop appears to be in good condition, prompting many traders to speculate that growers will have a good harvest in about three months. That could ease concerns about reports of lower coffee production in Colombia, analysts said.

Sterling Smith, a market analyst at Country Hedging LLC, thinks that the price could fall into a range between $1.65 per pound to $1.70 per pound, but noted that could be offset by strong overall demand.

Despite the falling futures prices, consumers aren’t likely to get a break at the retail level because manufacturers are paying higher costs to produce and ship their products, he said.

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