Coffee slips on speculation supplies are building

Coffee futures are slipping on speculation that some growers may sell stockpiles soon, which could ease tight global supplies.

Coffee for May delivery fell 3.55 cents to settle Tuesday at $2.7345 a pound.

The price jumped 77 percent in 2010, and has continued to climb this year as global supplies have grown tighter.

Analysts say Brazil and Vietnam both had good harvests last year but many producers have held their supplies in hopes of selling at higher prices.

That has led to fairly steady declines in supplies at the ICE Futures Exchange warehouses.

In the past week, the warehouses have recorded small inventory gains, creating speculation that some producers may be more willing to sell especially if prices begin to fall. – Bloomberg

Tags: Vietnam agriculture, Vietnam Coffee