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Coffee may extend gains on rains in Central America, Goldman Sachs Group says. Prices have risen in last month

Thursday, December 1, 2011

Arabica coffee prices may extend gains as rain disrupts supplies from Colombia and Central America, Goldman Sachs Group said.

Coffee will be at $2.35 a pound in three months, the bank forecast. “We see risk to our short-term price forecast as skewed to the upside,” Damien Courvalin, an analyst at Goldman, said in the report. Prices have climbed 5.2 percent in New York over the past month.

“Recent torrential rains in Central America have likely caused damage to both the local crops and infrastructure,” Courvalin said.

Original source: Bloomberg