Coffee to fall further as rains boost Brazil supplies

New York

HEDGE funds are betting your morning cup of coffee is going to get cheaper, even as prices head for a sixth straight monthly loss. Arabica-coffee futures tumbled in 2015 as ample rains boosted crops in Brazil, the world's biggest producer and exporter. That's lowering costs for Starbucks Corp and JM Smucker Co, the maker of Folgers brands. Money managers have stayed bearish for 18 straight weeks.

As favourable weather increases crop yields, declining currencies in producing countries are encouraging farmers to export supplies that fetch dollars in return. It's all adding up to overwhelming supplies, and the US Department of Agriculture is predicting that output will top use for a sixth straight year. Brazil…