Investing.com – Coffee futures were down for a second day on Wednesday, falling to a three-day low after Brazil forecast the largest off-cycle harvest in more than a decade, easing concerns over tightening global supplies.
On the ICE Futures Exchange, Arabica coffee for December delivery traded at USD2.6768 a pound during European morning trade, slumping 0.64%.
It earlier fell as much as 0.76% to trade at USD2.6735 a pound, the lowest price since September 9, when prices hit a three-week low of USD2.6560 a pound.
Brazil’s government crop forecaster Conab said Tuesday that it expected the country’s coffee harvest to total 43.15 million 60-kilogram bags of coffee in the 2011-12 marketing season.
While the estimate was lowered from last month’s projection of 43.54 million bags, it is still the country’s largest off-cycle crop since the 1999-2000 season.
Conab said that comfortable weather conditions in Minas Gerais, the nation’s largest coffee-growing state, benefitted crops and boosted yields.
Coffee growers in Brazil have a biennial cycle that alternates between years of higher and lower productivity. In the 2010-11 season, Brazil's last on-cycle crop, the country produced 48.09 million bags of coffee
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
The country’s largest coffee exporter Cooxupé said over the weekend that it was optimistic over crop prospects for the 2012-13 season, which is an on-cycle year, as rainfall during the planting season allowed early development of crops.
Agribusiness financial service provider Rabobank said in a report on Tuesday that, "expectations of large crops in Vietnam in the fall and Brazil next year as well as possible selling by producers should pressure prices lower".
Elsewhere, on the ICE Futures Exchange, cotton futures for October delivery dipped 0.16% to trade at USD 1.1113 a pound, while sugar futures for October delivery shed 0.81% to trade at USD0.2923 a pound.
On the ICE Futures Exchange, Arabica coffee for December delivery traded at USD2.6768 a pound during European morning trade, slumping 0.64%.
It earlier fell as much as 0.76% to trade at USD2.6735 a pound, the lowest price since September 9, when prices hit a three-week low of USD2.6560 a pound.
Brazil’s government crop forecaster Conab said Tuesday that it expected the country’s coffee harvest to total 43.15 million 60-kilogram bags of coffee in the 2011-12 marketing season.
While the estimate was lowered from last month’s projection of 43.54 million bags, it is still the country’s largest off-cycle crop since the 1999-2000 season.
Conab said that comfortable weather conditions in Minas Gerais, the nation’s largest coffee-growing state, benefitted crops and boosted yields.
Coffee growers in Brazil have a biennial cycle that alternates between years of higher and lower productivity. In the 2010-11 season, Brazil's last on-cycle crop, the country produced 48.09 million bags of coffee
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
The country’s largest coffee exporter Cooxupé said over the weekend that it was optimistic over crop prospects for the 2012-13 season, which is an on-cycle year, as rainfall during the planting season allowed early development of crops.
Agribusiness financial service provider Rabobank said in a report on Tuesday that, "expectations of large crops in Vietnam in the fall and Brazil next year as well as possible selling by producers should pressure prices lower".
Elsewhere, on the ICE Futures Exchange, cotton futures for October delivery dipped 0.16% to trade at USD 1.1113 a pound, while sugar futures for October delivery shed 0.81% to trade at USD0.2923 a pound.