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Articles about J. Ganes Consulting

Bloomberg News

Coffee prices heating up

Coffee prices at New York commodity markets rose the most in six months, and prices gained in London, after flooding caused by Hurricane Katrina put at risk inventories of beans in New Orleans, the second-largest coffee port in the U.S.

Warehouses in that city hold one quarter of the raw coffee in the U.S. The New York Board of Trade, which has 16% of its certified stockpiles of coffee in the Port of New Orleans, said earlier this week that deliveries were being suspended in the port.

September 1, 2005

The price increase reflects the "possible loss in some strategic supply," said Judy Ganes-Chase, president of J. Ganes Consulting, which advises traders, hedge funds and suppliers.

Procter & Gamble risks losing a large portion of its supplies with its biggest Folger's plant located in New Orleans.

Analysts said this increase will eventually hit consumers with high prices.

Coffee for December delivery rose 3.05 cents, or 3.1%, to $1.0105 a pound on the New York Board of Trade, the biggest gain for a most-active contract since Feb. 23. The New York contract is for Arabica coffee, a milder grade than Robusta beans used for instant coffee.

On the Liffe in London, Robusta coffee for November delivery rose $23, or 2.4%, to $975 a metric ton, after earlier rising as much as 5.6% to $1,005. Prices are up 45% from a year ago.

Of the two largest coffee makers in the U.S., Procter & Gamble is more at risk from Hurricane Katrina as it holds a higher share of its inventories in New Orleans than Kraft Foods, the maker of Maxwell House instant coffee. The biggest P&G Folgers coffee plant is located in New Orleans.

—Bloomberg News