28 September 2011

COMMODITIES / BRASIL : Robusta Coffee Harvest...Is Robust; Futures Face Further Declines.

                                        BLOOMBERG

     Bigger robusta bean harvests in Brasil and Vietnam are driving down coffee futures.
     Robusta traded in London has fallen 26% since March... and will drop another 5% by Dec. 31.
      Estimates are that Brasil's output will rise 14% to 14.5 million bags.
      Though stockpiles are rising and futures slumping, consumers may not see price relief for 6 months.
      Roasters and retailers must first deplete inventories purchased at higher costs.