Alex Bobrov
Exchange news. It keeps raining in Colombia, the world’s second largest producer of Arabica. According to the National Federation of Coffee Growers in Colombia, the expected yield may drop to 8.5 mln. bags, whereas in August the expected production in the region amounted to about 9.5 mln. bags.
This year the volume of production is lower than during the previous years. About 525,000 bags were produced this October, whereas in October 2006, 2007, and 2008 about 800,000-1,000,000 bags were produced.
Market tension remains while waiting for the results of Greek referendum. According to expectations, economy will decline, and people will start buying less. Due to this, prices of coffee futures have dropped to 220 level of support.
According to Department of Derivatives Trading, only strong position of dollar in future can make the price lower, for global and seasonal factors that encourage its growth remain.
Alex Bobrov
