Kochi :

Coffee exporters are not enthused with the early arrival of coffee beans this time, as global prices of the commodity are on a downswing following reports of a good crop in Brazil, its largest producer.

With most of the coffee stock exhausted, exporters are waiting for the new crop. But in a low-price situation, they fear they may not be able to take advantage of an early crop, particularly that of Arabica.

“As the prices are dropping, exporters are not selling, though buyers may be interested. We hope that prices will improve after a few months,” said MP Devaiah, business head of coffee at Allanasons, a major coffee exporter.

The price of coffee in the international market has been declining since August. Arabica futures prices at ICE New York stood at $1.22 per pound on November 1, down by 15-20% from earlier this year. Robusta prices, too, are showing a declining trend.

The picking of arabica beans, which normally start by the end of November, has already begun in the coffee producing states. “This time, it may be completed by the end of November, instead of in December,’’ said MM Chengappa, former chairman of Karnataka Planters’ Association. Harvest of robusta is expected to begin a month earlier, in December.

Coffee growers fear that the heavy rains last month have led to a fall of berries on a large scale.

Although the post blossom estimate of the Coffee Board projects an output of 3,50,400 tonnes for 2017-18, growers feel output will be less by a large margin. According to them, delayed monsoon will affect the robusta production.

“Total output will be about 3.12 lakh tonnes, similar to last year. Robusta will be around 2.10 lakh tonnes, against 2.47 lakh tonnes projected by the Board,’’ Chengappa said.

source: http://www.economictimes.indiatimes.com / The Economic Times / ET Home> Markets> Commodities> News / ET Bureau / November 03rd, 2017