COMMODITIES : Coffee Futures Dip in Wild Session

Coffee futures prices fell in a volatile trading session that ultimately reflected skepticism about Brazil’s surprising announcement that it was considering a return to export quotas.

On other commodity markets, energy futures were mostly lower; futures prices for precious metals, grains, soybeans, livestock and meat finished mixed in mostly lackluster trading.

Coffee futures settled 0.25 cent to 1.95 cents lower on New York’s Coffee, Sugar & Cocoa Exchange, with the contract for May delivery of green, unroasted coffee down 1.95 cents at 93.05 cents a pound.

Prices opened at six-month highs in reaction to Brazil’s announcement late Thursday that it was indefinitely suspending coffee export registrations while it reviews its position regarding export quotas.

The announcement suggested that the world’s biggest coffee-producing country might be ready to concede in a standoff with the United States over Brazil’s share of the world coffee market.

Nearly two years ago Brazil refused to accept a cut in its export quota under an international coffee agreement. The deadlock led to the collapse of the price-support agreement in July, 1989, and a sharp drop in world coffee prices.

The May contract’s price zoomed to $1 a pound in early trading Friday for the first time since September. But the market reversed and ended lower after Brazil indicated that it could resume exports to meet undefined “emergency needs” and issued no further word on quotas.

Skepticism also was prompted by an International Coffee Organization statement indicating that it was taking a cautious view of Brazil’s statement.

Meanwhile, gold settled 40 cents lower to 10 cents higher, with April at $363.50 an ounce; silver was 2.8 to 3 cents lower, with March at $3.966 an ounce.