Coffee Futures Stabilize Following Post Hurricane Rally

Coffee futures are subdued after post-Hurricane Katrina price spikes, with ongoing stability probable after reports that 700,000 bags of coffee stored in New Orleans warehouses were left undamaged by the hurricane.

Port Cargo Service, a privately-held New Orleans storage handler with 28 warehouses in the city, reported that they have “no odors, no unusual humidity or toxicology problems, and suffered no losses in our seven coffee warehouses."

Prices for the omnipresent beverage and confectionery ingredient coffee leapt last week after flooding caused by Hurricane Katrina put inventories of beans in New Orleans at risk.

New Orleans houses some 1.6 million bags of coffee, a 27 per cent chunk of the U.S.' total 6 million bags. That just over half of the stock, some 730,000 bags, are certified is likely to bring stability to prices.

There are about 110 million bags worldwide.

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