BRASILIA (Commodity Online) : International coffee prices are simmering, with Brazil--the largest producer of coffee in the world--holding back the dwindling stocks of 1.2 million bags of exportable 2009 arabica and Colombia experiencing a supply shortfall.
Coffee prices have more than doubled since last summer and a deficit of 135 million bags is expected for the 2011-12 international crop year.
However, farmers around the globe are unlikely to switch to Arabica, the lucrative variety of coffee, owing to its five year gestation period and labour intensive inputs.
Brazil is currently undergoing a lean year in coffee that is a part of coffee crop cycle. Brazil’s Conab—coffee supply agency-- has estimated approaching 2011 harvest to deliver 41.9 million to 44.7 million 60-kg bags of coffee down from previous year's 48.1 million bags.
On Monday, March delivery Arabica prices in ICE Futures were at a 14-year high of $2.72 a pound.
Wednesday, February 23, 2011
Arabica simmers; farmers still unlikely to switch over
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