Business Standard

Global coffee production to be record in 2012-13

Related News

Global output will climb to a record next season, as the crop in top global producer Brazil rises, according to CoffeeNetwork, a unit of INTL FCStone Inc.

Farmers around the world will harvest 146 million bags in the 2012-13 season, an increase of 8.1 percent from an estimated 135 million bags in 2011-12, Andrea Thompson, the Belfast-based head of research and analysis at CoffeeNetwork, said. The 2012-13 season starts in October in most countries. A bag of coffee weighs 60 kilograms (132 pounds).

Production in Brazil will jump to 56 million bags in 2012-13 as arabica trees enter the high-yielding half of a two- year cycle, Thompson estimated. Output in the current season will be 49.2 million bags, according to the US Department of Agriculture. The season in Brazil usually starts in July.

Coffee climbed to a 14-year high of $3.089 a pound in New York in May as Brazil’s production dropped due to its biennial cycle and rains cut output in Colombia, the second-biggest arabica grower. Prices have fallen 39 per cent since then as traders sold the beans in anticipation of improved supplies.

“The tight supply situation in 2011-12 was one of the factors behind the rise in prices to multi-year highs,” Thompson said. “The market is now well off those highs and there has been a growing feeling as 2012 progresses that there is currently more downside potential than upside for the market.”

The global supply and demand balance may return to a surplus in 2012-13 after an estimated deficit of 1 million bags in the current season, according to CoffeeNetwork.

The price of robusta coffee will average $1,750 a ton to $1,850 a ton in the first quarter, she said. Robusta coffee for May delivery closed at $2,088 a tonne yesterday.

Read more on:   
|
|
|

Read More

Oil traders seek protection from high seed prices

Faced with crushing margins turning negative once again due to a spurt in oilseed prices, traders have urged the government to curb excessive ...

Quick Links

Market News

BSE offers whistleblower platform

Participants can now provide anonymous feedback on possible market manipulation

Maruti Suzuki hits new high on brokerage upgrades

Analyst at Karvy Stock Broking reiterate "BUY" rating on the stock with a target price of Rs 4,300 per share.

Sensex up nearly 100 points; TCS, HDFC up over 1%

The 30-share Sensex was up 99 points at 29,670 and the 50-share Nifty was up 40 points at 8,950.

Mentha oil declines by 0.2% on subdued demand

Speculators reduced positions amid sluggish demand from consuming industries in spot markets

Crude oil down 0.8% on weak Asian cues

Speculators reduced exposures amid a weak trend in Asian trade

 

Back to Top