Weather-damaged coffee crops reduce U.S. inventories to its lowest levels since 2000, which could signal end of industry's biggest slump in three years
November 23, 2011
– Coffee crops damaged by weather have reduced U.S. inventories to its lowest levels since 2000, which could signal the end of the industry’s biggest slump in three years, Bloomberg reported Nov. 23.
Exchange data shows that stockpiles in warehouses monitored by ICE Futures U.S. have fallen 16% since December, the fourth straight year of declines. Meanwhile, analysts say, arabica-coffee futures may rise 15% to US$2.71 a pound by March.
Last month, Colombia reported a 19% drop in output, while exports slowed from Brazil, the world’s top grower. The London-based International Coffee Organization already expects production of arabica, the most-consumed variety, to decline 3.7% this year.
The primary source of this article is Bloomberg, New York, New York, on Nov. 23, 2011.