Funds back down from coffee bets on crops weather threat
Too much rain in Colombia, and too little in Brazil. South American coffee crops are suffering from a confluence of extremes, signalling tighter supplies than expected.
The adverse weather is shaking the confidence of hedge funds, who less than a month ago held a record wager that arabica coffee futures would fall. Instead, prices have posted two straight weekly gains, reaching a two-month high on November 30.
Bountiful harvests for producers in Central America, led by Honduras, can help make up for South American declines.