Coffee futures prices tumbled Friday on fears that international export controls could unravel.
On other markets, livestock and meat futures were lower, wheat was higher while corn declined, precious metals were higher and energy futures were mostly lower.On the Coffee, Sugar & Cocoa Exchange in New York, coffee futures were hurt by news that Brazil's minister of industry and commerce, Jose Andrade Vieira, was considering resigning from office.
Vieira was a main architect of a plan aimed at limiting the amount of coffee available for export by major producing countries.
"London traders made the assumption that the reason (for Vieira leaving office) was totally related to coffee," said Judith Ganes, an analyst in New York with Merrill Lynch & Co..
Prices plunged in New York, following the London market.
But Vieira told reporters his decision was unrelated to the so-called coffee retention plan. Instead, Vieira said he wants to leave to pursue higher political ambitions.
His explanation emerged during trading hours in New York, but seemed to have no impact. "If he steps down, for whatever reason, the market still has doubts about the success of the retention plan," Ganes said.
Coffee for March delivery lost 2.90 cents to settle at 78.15 cents a pound.
Cattle futures prices slipped at the Chicago Mercantile Exchange as traders awaited the Agriculture Department's monthly cattle-on-feed report.
The report was almost exactly what was expected: total number of animals on feedlots 6 percent more than one year ago, the number placed on feedlots during October down 7 percent and the number of animals marketed up 3 percent.
The 9.08 million animals on feedlots as of Nov. 1 is the fourth largest in history and the most in 15 years, said Charles Levitt, an analyst in Chicago with Alaron Trading Corp.
But since this was largely expected, the USDA report is probably neutral for futures prices, Levitt said.
Live cattle for delivery in December were .65 cent lower at 73.17 cents a pound; January feeder cattle were unchanged at 82.52 cents a pound; December hogs were .42 cent lower at 45.35 cents a pound; and February pork bellies were .15 cent lower at 54.20 cents a pound.
Wheat futures prices advanced to 17-month highs at the Chicago Board of Trade on hopes for improved exports. Analysts said the market was buoyed by the hope that global trade would benefit from the Pacific Conference being attended by President Clinton in Seattle.
Wheat for delivery in December gained 51/2 cents to settle at $3.573/4 a bushel; December corn was 1 cent lower at $2.813/4 a bushel; December oats were 1 cent lower at $1.341/2 a bushel; and January soybeans were 1 cent higher at $6.873/4 a bushel.
Precious metals prices futures advanced at New York's Commodity Exchange under renewed inflation concerns.
The market reacted to a three-year high in Thursday's inflation index put out by the Commodity Research Bureau.