Confidence about reduced supplies helped drive up coffee futures on Tuesday as the soft commodity's prospects in top grower Vietnam are poised to slow, according to Bloomberg.
With the onset of the Islamic holiday Ramadan on Tuesday, Indonesia – the third-biggest grower – also is looking at a slowdown of sorts. The agriculture ministry of Vietnam projected exports of coffee last month amounted to 91,000 metric tons, a reduction from the 141,000 metric tons one year prior.
"In robusta, Vietnamese are likely to keep holding on to what is left of the remaining 2012-13 coffee crop, causing premiums to rise again against London futures," states a Tuesday report authored by analyst Kona Haque with Macquarie Group Ltd. in London, according to Bloomberg. Macquarie Group is the biggest investment bank in Australia.
At 8:58 a.m. on Tuesday, coffee futures rose 0.81 percent, a cent gain to $1.2445 per pound.
Investing.com reports shippers of coffee in South and Central America are pulling back on supplies until prices of the soft commodity demonstrate they are recovering. Recent gains are linked with the belief that prices fell too quickly before, the news source reports.
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