Coffee Falls as New Forecasts Ease Threat of Freeze Damage to Brazil Crop

(Bloomberg) -- Coffee fell from a four-week high in
New York as concerns eased that a crop-damaging frost may
develop in Brazil, the world's largest producer.

No freezing weather is forecast through July 28 in Brazil's
growing regions, said forecaster Meteorlogix LLC in Woburn,
Massachusetts. Northern Parana and western Sao Paulo states will
see temperatures as low as 41 degrees Fahrenheit (5 degrees
Celsius). Forecasts for colder-than-normal weather helped send
prices yesterday to their biggest gain in seven weeks.


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India's October-June Coffee Exports Drop 15 Percent as Rupee Strengthens

(Bloomberg) -- Coffee sales from India, which makes
up 4.5 percent of global output, fell 15 percent by value in the
October-to-June period after the rupee rose to a nine-year high.

Companies including local units of Switzerland-based Nestle
SA sold $268 million of coffee overseas between Oct. 1 and June
30, from $314 million a year ago, the Coffee Board said on its
Web site. Exports were little changed at 183,637 metric tons.


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Brazilian Coffee Growers Sell 4 Million Bags Offered at Subsidy Auction

(Bloomberg) -- Coffee growers in Brazil, the
world's biggest producer, sold all 4 million bags offered at an
auction today that was subsidized by the government.

The government will pay growers a subsidy of 39.99 reais
($20.40) a bag to supplement prices paid by roasters and
exporters, the Agriculture Ministry said on its Web site. Buyers
paid at least 260 reais per bag.


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Coffee Futures Rise on U.S. Forecast Global Output to Decline Next Year

(Bloomberg) -- Coffee rose in New York after a U.S.
forecast that global production will drop next year.

Worldwide output will fall 9 percent to 118.9 million bags
in the year ending June 2008 because of a smaller crop in
Brazil, the world's biggest grower, the U.S. Department of
Agriculture said on June 8. Before today, the price of coffee
climbed 19 percent from a year ago.


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Coffee Rises to Seven-Week High; Brazil Farm Subsidies May Boost Prices

(Bloomberg) -- Coffee in New York rose to a
seven-week high after Brazil, the biggest producer,
announced a subsidy plan that may boost domestic prices for
arabica beans.

The government said it will pay farmers 40 reais ($21)
to ensure they get 300 reais a bag, and will hold auctions
twice a month, each for as many as 1 million bags. Arabica,
the mild-tasting bean preferred by coffeehouse operators
such as Starbucks Corp., is traded in New York.


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Indonesia's Coffee Exports More Than Halve in April as Production Declines

(Bloomberg) -- Indonesian coffee farmers in the key
growing areas of Sumatra exported less than half the volume of
beans in April compared with the same month in 2006 because of
lower output, the Indonesian Coffee Exporters Association said.

Farmers in Lampung, Bengkulu and South Sumatra provinces
shipped 4.8 million kilograms of beans in April, compared with
10.57 million kilograms in the year-ago month, the association
said today in a faxed statement.


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Coffee Falls for First Day This Week in New York as Brazil Skirts Frost

(Bloomberg) -- Coffee in New York fell for the first
time this week as the risk of frost diminished in Brazil, the
world's largest producer.

Favorable coffee-growing weather is expected in Sao Paulo
and Minas Gerais states, Massachusetts-based forecaster
Meteorologix LLC said. Coffee rose 3.1 percent yesterday on
forecasts for a likely frost that might damage crops.


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