coffee futures news

coffee futures news

May 17th, 2016

Since drought concerns first emerged in February this year, London robusta coffee prices have rallied by over 25%.

Prices are currently trading at an eight-month high of $1679 per tonne, as drought fears have cut estimates of the 2016/17 crop production from top robusta producing countries including Vietnam, Brazil, Indonesia and, more recently, India.

Coffee Futures: Eyes on skies

With the rainfall season approaching in Vietnam, the country’s Meteorology and Hydrology Department’s (GDMH) in its May statement forecast 20 – 40% lower rainfall in the main producing areas of the South and the Central Highlands.

Current rainfall has been scattered and this will lend little support to production, “so drought and water conditions won’t improve much” in the short-term, according to GDMH.

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