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Supply Outlook Brings Prices for Wheat & Coffee Down

June 2, 2014 at 22:57 by Vladimir Vyun

Wheat prices dropped today due to speculations that favorable weather should boost output. Areas of the United States from Oklahoma to Nebraska received as much as 6.4 centimeters of precipitation over the weekend. Rainy weather also helped crops in Eastern Europe, including Ukraine, Belarus and western parts of Russia. With falling chances of a conflict between Russia and Ukraine supply from Eastern Europe should be steady. July futures for delivery of wheat fell $0.0650 (1.04 percent) to $6.2075 per bushel as of 22:37 GMT on CBoT today.

Futures for coffee also fell today because of weather as rains in Brazil eased drought. Experts believe that this will allow Brazilian farmers to gather bigger harvest than was previously estimated. Yet some specialists say that many crops will not recover from damage that they have incurred because of the dry conditions, meaning that prices may yet rebound. Arabica coffee futures dropped as much as $0.0515 (2.90 percent) to $1.7235 per bushel on ICE today.

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