Inclement weather might pull down harvests of robusta coffee beans to the lowest in about eight years in the globe's largest grower of the coffee bean, according to Bloomberg.
Consequently, coffee futures might drive to their highest price in about two years. Generation is poised to slip by as much as 30 percent to amount to 1 million tons for the 12-month period beginning in October in Vietnam, according to the median of estimates in a Bloomberg survey.
"There's a very high chance of a poor crop with this dry weather," deputy director Mai Ky Van with October Coffee-Cocoa One Member Ltd. told the news source on Friday, noting the firm he works for is drawing water for its plantations from faraway reservoirs. "If it doesn't rain in the next 20 days or so, damage will be huge."
At 10:40 a.m. on Friday, coffee futures dropped 0.93 percent, a 0.014 cent loss to $1.3835 per pound.
Robusta coffee prices earlier this week notched their five-month peak, according to Business Recorder. The dry weather in Vietnam helped drive up market prices.
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