Arabica-Coffee Futures Still Under Pressure From Big Supplies

  NEW YORK  -  Arabica futures eased Tuesday morning as massive supplies of coffee

continued to weigh on the market.

  "All the fundamentals are still bearish -- it's not indicating that this

(market) is going to recover anytime soon," said Andre Santos, a trader at Ally

Brazilian Coffee Merchants in Plantation, Fla.

  Global supplies of coffee beans have swelled thanks to back-to-back bumper

crops from Brazil, the source of one-third of the world's coffee, and

recovering production from neighboring Colombia.

  Arabica coffee for December delivery on the ICE Futures U.S. exchange was

recently 0.4% lower at $1.1400 a pound in thin volume trade.

  "It's a sideways market right now," Mr. Santos said, but futures could touch

$1 a pound before the market finds a bottom, he added.

  Also, Colombians have become much more aggressive sellers of their coffee

over the last two months, Mr. Santos said, which is adding pressure to prices.

  The premiums paid for Colombian coffee "have come down significantly," he

said. "They just want to move, move, move" to make room for the new crop, which

producers will start harvesting soon.