Friday, June 1, 2007

Coffee Rises to Three-Month High; Brazil Farm Subsidies May Boost Prices

(Bloomberg) -- Coffee in New York rose to a three-
month 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 as much as 40 reais
($21) to ensure they get 300 reais a bag, and will hold auctions
twice a month. Brazil will subsidize as many as 5 million bags
through the end of the harvest in October. Arabica, the mild-
tasting bean preferred by coffeehouse operators such as
Starbucks Corp., is traded in New York.


Read more at Bloomberg Commodities News

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