In October supply of new yield of coffee will start to the world market. Experts predict that due to the heavy yield, coffee may become considerably cheaper, as announced by BMF.RU.
During the previous marketing year coffee price has increased almost twice due to poor yield and shortage of coffee supply to the world market. This year Indonesia, the world’s third largest exporter of coffee, will cut its supply by 16% (last year the drop amounted to 12%). However, heavy yield in Brazil and Vietnam, world leaders of coffee export, will compensate for Indonesian “lack”. Thus, in Vietnam 9.8% more Robusta will be gathered in comparison to the previous year, whereas Brazil is planning to increase its export of Robusta coffee beans by 14%. Other large exporters – Cote d’Ivoire, Guinea, Madagascar, Laos, and others – have also been reported to have excellent yield.
Producers of another popular coffee grade – Arabica – from Central America are also expecting to have a record yield for the last decade.
Markets have already reacted to the high forecast: since March average Robusta price has dropped by 26% at London exchange NYSE Liffe, whereas during September Arabica price has dropped by 16% at New York exchange ICE Futures U.S.
Some largest companies (for example, Kraft, which releases coffee under Maxwell House trade mark) have lowered their prices by 6% already in August.
During the previous marketing year coffee price has increased almost twice due to poor yield and shortage of coffee supply to the world market. This year Indonesia, the world’s third largest exporter of coffee, will cut its supply by 16% (last year the drop amounted to 12%). However, heavy yield in Brazil and Vietnam, world leaders of coffee export, will compensate for Indonesian “lack”. Thus, in Vietnam 9.8% more Robusta will be gathered in comparison to the previous year, whereas Brazil is planning to increase its export of Robusta coffee beans by 14%. Other large exporters – Cote d’Ivoire, Guinea, Madagascar, Laos, and others – have also been reported to have excellent yield.
Producers of another popular coffee grade – Arabica – from Central America are also expecting to have a record yield for the last decade.
Markets have already reacted to the high forecast: since March average Robusta price has dropped by 26% at London exchange NYSE Liffe, whereas during September Arabica price has dropped by 16% at New York exchange ICE Futures U.S.
Some largest companies (for example, Kraft, which releases coffee under Maxwell House trade mark) have lowered their prices by 6% already in August.
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