Strong production of coffee in the globe's top grower of the soft commodity is helping with a worldwide glut, according to Bloomberg.
Farmers in Brazil are set to collect 50.8 million bags of coffee next year, which represents a record for what is considered the low-crop season, according to the median of nine analysts surveyed by Bloomberg. The harvest pushed to 55.9 million 60-kilogram bags this year, which is a record for a peak season.
Coffee futures have dropped roughly 50 percent since May 2011.
"There's a significant crop coming from Brazil if the weather continues to be favorable," trading head Claudio Oliveira with Castlestone Management in New York told the news source on Tuesday. "Abundant supply is the driving force in the market."
At 2 p.m. on Tuesday, coffee futures fell 1.56 percent, a 0.0235 cent loss to $1.4835 per pound.
Reuters reports another South American country, Peru, is the globe's largest producer of organic coffee. The Andean nation trails Brazil for sales as one of the world's top 10 growers of the soft commodity.
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