A steady flow of coffee beans coming out of Latin America will keep pressure on the soft commodity related exchange traded note.
The coffee market is hovering around a four and a half year low due to a bumper crop in Brazil, which accounts for a third of the world’s supply, reports Emiko Terazono for Financial Times.
Brazil harvested a record “off-year” crop and is headed for another bumper crop for next year after a favorable mix of alternating rainy and dry weather conditions, which has some analysts expecting higher-than-anticipated yields, writes Rob Kurzatkowski, Senior Commodity Analyst, for FuturesBlogs.
Coffee prices could fall another 10% over the next few months on increased supplies from Brazil, Colombia and Vietnam weigh on the market, reports Mahesh Kulkarni for Business Standard.
Colombia is generating an improved crop while Vietnam could also harvest a large crop next month.