Commodities : Friday, Jan. 17, 1986 : Selling Hits Coffee Futures

Jitters over the issue of a quota suspension at Monday’s meeting of the International Coffee Organization in London were grounds for unexpected selling of coffee futures Friday, traders said.

Futures prices on the New York Coffee, Sugar and Cocoa Exchange tumbled the limit of 6 cents a pound at mid-morning on contracts for delivery in distant months.

Traders are worried that, because coffee prices have remained well above target levels, the ICO will lift quotas on its 75 member-nations before they automatically lapse Feb. 18.

The ICO’s goal is to keep the average world price contained within a band of $1.20 to $1.40 a pound.

However, the price has soared more than 60 cents above this ceiling to its highest level in nearly nine years. Poor growing conditions in Brazil, the leading exporter, are blamed for the soaring prices.

Futures prices for petroleum products slipped more on the New York Mercantile Exchange after they fell to their lowest levels since the late 1970s on Thursday in a slump analysts attributed to oversupply and mild weather.