Bloomberg reports the regions of Brazil where coffee crop cultivation is prominent will not be subject to damaging frosts within the next two-plus weeks, according to a meteorological forecaster. Since last month, when notching the highest prices since 1997, prices of the soft commodity have dived 17 percent as the global production outlook has brightened.
"Prices are under pressure as there are no predictions of a frost in Brazil," Boyd Cruel, a senior analyst at Vision Financial Markets in Chicago, told the news service. "We are also witnessing some technical selling."
At 2 p.m. on Thursday, coffee futures rose 2.07 percent, a 0.053 cent climb to $2.6125 per pound.
Bloomberg reports Guatemala, the biggest grower of coffee in Central America, saw a 7.6 percent increase in coffee production last month, according to a coffee association in the country.
The Southern Coast of India absorbed 12 percent more rain from monsoons through the end of May, Reuters reports. The additional moisture has the potential to benefit the region's coffee and rubber crops.
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