Coffee Falls to Lowest in 15 Months on Concern Demand May Slip

By Ron Day

Oct. 8 (Bloomberg) -- Coffee fell for a sixth straight session, touching the lowest price since July 2007, on speculation that demand will tumble as the global economy slows.

Inventories in warehouses monitored by ICE Futures U.S. are rising and exports from Brazil, the world's biggest producer, are increasing. The U.S. Federal Reserve, the European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of a spreading financial crisis that has clogged credit markets.

``Things are very well deteriorated,'' said Julio Sera, a trader at Hencorp Futures in Miami. ``If you look at certified stocks, they do nothing but go up, and exports from Brazil are going up.''

Arabica coffee futures for December delivery fell 2.45 cents, or 2.1 percent, to $1.1175 a pound at 9:24 a.m. on ICE in New York. Earlier, the price reached $1.0935, the lowest for a most-active contract since July 16, 2007.

Sera said the price may drop to $1 a pound in the short term.

To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net.