06 September 2011

COMMODITIES / COFFEE / BRASIL: Coffee Rally Ending As Production Rebounds.

                                         BLOOMBERG

     Look for speculators to soon exit arabica coffee futures...as bean production has rebounded in Brasil, Central America and Colombia...after a rapid 50% price increase this year.
     Forecasters say Brasil may produce up to 37% more next year...3.78 million metric tons (63 million bags).
    And Central American production will increase the most since the 1999- 2000 season.
    “I’m saying to the producers that now is the moment to sell,” said a Guatemala coffee official. “We could have these prices until March or April, but no more than that.”