Production of coffee in a top African coffee grower will suffer a reduction as much as 27 percent through June of next year due to drought conditions, according to the nation's coffee board.
Bloomberg reports Tanzania's marketing production will be as high as 45,000 tons in 2012. This year's totals hardly exceeded 55,000 tons, according to Adolph Kumburu, director general of the agency.
The slippage will be "due to drought reports from growing regions," Kumburu said in an email.
This isn't the first time commodity production in Tanzania has suffered from inclement weather. From December 2009 to March 2010, Tanzania's coffee, tea and lint cotton crops slipped because of drought.
Located in East Africa, Tanzania increased its planting to increase coffee production to 100,000 tons by 2015, Kumburu said in February. Western Tanzania grows robusta and Arabica and Arabica grows in the north and the south. Arabica beans are 75 percent of Tanzania's production and robusta beans are 25 percent.
Ethiopia, Uganda and the Ivory Coast also top coffee producers in Africa. Papua New Guinea in the South Pacific also is a major coffee grower.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.