Vietnamese shipments of robusta coffee beans plunged 23 percent in August as compared to the same period of 2010, according to brokerage Marex Spectron Group of London.
Bloomberg reports the nation that supplies the globe's top amount of beans used for instant coffee purposes shipped 65,000 metric tons last month as compared to shipping 84,000 tons during August 2010. But for crop year 2010-11, exports amounted to 985,000 tons, a significant upgrade from the 2009-2010 total of 906.000 metric tons.
"There is simply too much coffee," states a market report issued by the London brokerage. "Vietnam had probably a greater carry-in than we thought and a higher crop than we thought."
At 7:52 a.m. on Thursday, coffee futures dropped 1.16 percent, a 3.35 cent slip to $2.849 per pound.
Reuters reports Arabica coffee beans also lost value Thursday, bringing a 17-day rally to a close. But the strength of the market remains robust as the quality of the arabica beans remains high, serving as a strong baseline that solidifies the foundation of the market.
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