Thursday, June 28, 2007

Coffee Rises on Speculation Brazilian Auction Set Price Floor for Beans

(Bloomberg) -- Coffee rose in New York for the third
straight session on speculation an auction in Brazil, the world's
largest producer, helped set a minimum price for the commodity.

All 4 million bags of beans offered at the auction yesterday
sold for at least 260 reais ($135.20) per bag. The price topped
the average 235.11 reais per bag for arabica in southern Minas
Gerais, Brazil's biggest coffee-producing region, according to
the University of Sao Paulo's agricultural commodities research
unit, known as Cepea. The Agriculture Ministry plans to hold an
auction for an additional 1 million bags next month.


Read more at Bloomberg Commodities News

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