Brazil’s Coffee-Output Estimate Lowered by USDA Unit

Brazil, the world’s biggest coffee grower, will produce 1.4 percent less than forecast six months ago after hot, dry weather in the state of Espirito Santo cut robusta-bean output, a U.S. Department of Agriculture unit said.
Production in the year that started July 1 will be 54.5 million bags, down from 55.3 million projected in May, the USDA’S Foreign Agriculture Service said in a report posted today on its website. The estimate on robusta was cut by 800,000 bags, and arabica projection was unchanged at 41.8 million.
Exports will be 32 million bags, unchanged from the May estimate, the USDA unit said. A bag weighs 132 pounds, or 60 kilograms.
Arabica coffee for March delivery gained 3.9 cents, or 1.9 percent, to $2.0725 a pound today on ICE Futures U.S. in New York. The price has climbed 52 percent this year.
Robusta-coffee futures for January delivery rose $27, or 1.4 percent, to $1,902 a ton on NYSE Liffe in London. The commodity has gained 47 percent this year.
Arabica is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa.
(Source: http://www.bloomberg.com/news/2010-11-15/brazil-coffee-output-estimate-cut-1-4-by-usda-unit-after-adverse-weather.html)