05-15-2014, 09:56 PM
...cause there's an awful lot of coffee in Brazil." But not as much as you might wish.
It's going up even more at the supermarket, friends. Thought you'd like to know.
Arabica coffee up 7 percent after Brazil crop report
Thu May 15, 2014 6:33pm GMT
NEW YORK/LONDON, May 15 (Reuters) http://af.reuters.com/article/commoditie...geNumber=2&virtualBrandChannel=0 - Arabica coffee futures soared around 7 percent on Thursday after top grower Brazil's crop supply agency revised its production estimate lower as dry weather was expected to curb output, though many felt the rally was overdone.
Brazil's new coffee crop is forecast at 44.57 million 60-kg bags, down nearly 9 percent from a January estimate due to drought over the heart of the arabica growing belt, Brazil's Conab said, pegging arabica production at 32.23 million bags and robusta at 12.33 million bags.
Conab's estimate is typically below trade house estimates, which are currently ranging widely from below 40 million bags to around 56 million bags. Traders were particularly surprised by Conab's robusta production forecast, nearly 5 million bags below industry estimates of around 17 million bags. Robusta growing regions were not affected by the January-February drought.
Traders said forecasts for cool weather in Brazil's coffee belt later this month has also spooked the market, though temperatures will remain well above freezing levels.
It's going up even more at the supermarket, friends. Thought you'd like to know.
Arabica coffee up 7 percent after Brazil crop report
Thu May 15, 2014 6:33pm GMT
NEW YORK/LONDON, May 15 (Reuters) http://af.reuters.com/article/commoditie...geNumber=2&virtualBrandChannel=0 - Arabica coffee futures soared around 7 percent on Thursday after top grower Brazil's crop supply agency revised its production estimate lower as dry weather was expected to curb output, though many felt the rally was overdone.
Brazil's new coffee crop is forecast at 44.57 million 60-kg bags, down nearly 9 percent from a January estimate due to drought over the heart of the arabica growing belt, Brazil's Conab said, pegging arabica production at 32.23 million bags and robusta at 12.33 million bags.
Conab's estimate is typically below trade house estimates, which are currently ranging widely from below 40 million bags to around 56 million bags. Traders were particularly surprised by Conab's robusta production forecast, nearly 5 million bags below industry estimates of around 17 million bags. Robusta growing regions were not affected by the January-February drought.
Traders said forecasts for cool weather in Brazil's coffee belt later this month has also spooked the market, though temperatures will remain well above freezing levels.