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Thursday, December 23, 2010

Global coffee prices to go high on 2011

Global coffee prices to go high on 2011 ; Cotton prices in 2011 is speculated to be high as production is Brazil, the world’s largest coffee grower would enter lower yielding half of a two year cycle. Brazil exports a third of world’s total exports, the coffee production in Brazil drops every other year as the trees can’t sustain high yields for two straight harvests.

Growers will harvest 37 million bags, down 23 percent from 48.1 million bags estimated for this year, Agriculture Minister Wagner Rossi said in an interview in Brasilia on Wednesday. Coffee prices will likely rise next year as global demand outpaces supplies amid declining stockpiles, he said to reporters.

Coffee, which has surged 72 percent this year, extended a rally to a 13-year high earlier today on concern adverse weather in Brazil and India will pare global supplies. Arabica coffee for March delivery reached $2.4225, the highest since June 1997. It fell 1.6 percent to $2.3005 per pound at 12:51 p.m. on ICE Futures U.S. in New York, Bloomberg reported.

“Prices will likely remain on a steady rise, World demand is firm and global stockpiles are low, fungus that was found in coffee crops in southeastern Brazil and excess rains won’t hurt production” Rossi added. For the latest updates PRESS CTR + D or visit Stock Market news Today

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