Coffee prices set to fall as output seen rising
Tuesday, 26 October 2010
HANOI, Oct 25 (Commodity Online): Vietnam is expected to see robust coffee production this year as weather conditions in the region remained favourable.
Vietnam, the largest robusta grower, is believed to see a total coffee output of 1.2 million tonnes for the coffee year starting from October 1, a Bloomberg report noted.
Coffee futures has been on the rise in the wake of global crop shortage, however, the positive outlook for the crop, will help ease prices, which have already hit their highest since 2008.
Meanwhile, Indonesia, another robusta coffee grower, is expected to up its production as much as 3 per cent to 10 million bags this year, an international coffee organisation statistics noted.
Robusta prices have touched USD 1,910 per tonne on NYSE Liffe on October 21, which is the highest level since October 14, 2008.
The prices have so far gained 34 per cent over the past year.
While, Robusta prices are scoring peak, Arabica has touched highest level in past 13 years. On the ICCE futures Arabica prices touched USD 2.035 per pound on October 21.
Arabica production in Brazil has been hit with a severe drought situation and the output is expected to fall to the lowest level in four years in 2011.
Vietnam, the largest robusta grower, is believed to see a total coffee output of 1.2 million tonnes for the coffee year starting from October 1, a Bloomberg report noted.
Coffee futures has been on the rise in the wake of global crop shortage, however, the positive outlook for the crop, will help ease prices, which have already hit their highest since 2008.
Meanwhile, Indonesia, another robusta coffee grower, is expected to up its production as much as 3 per cent to 10 million bags this year, an international coffee organisation statistics noted.
Robusta prices have touched USD 1,910 per tonne on NYSE Liffe on October 21, which is the highest level since October 14, 2008.
The prices have so far gained 34 per cent over the past year.
While, Robusta prices are scoring peak, Arabica has touched highest level in past 13 years. On the ICCE futures Arabica prices touched USD 2.035 per pound on October 21.
Arabica production in Brazil has been hit with a severe drought situation and the output is expected to fall to the lowest level in four years in 2011.