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Arabica coffee exports seen up in 2010/11
15 | 11 | 2010
AGROINFO - Global washed arabica coffee exports will rise this season but dwindling stocks will keep the market in a delicate balance between supply and demand, an F.O. Licht analyst said on Friday.
Global washed arabica coffee exports will rise this season but dwindling stocks will keep the market in a delicate balance between supply and demand, an F.O. Licht analyst said on Friday.

Global washed arabica exports, which are considered higher quality and only make up around 30 percent of trade, are seen at 33.3 million bags in 2010/11, boosted by a recovery in major producer Colombia, commodities expert Stefan Uhlenbrock said.

Colombia has seen two straight years of low output, which has pinched supplies and led to a surge in arabica futures, but the country's production will likely rise to 9.6 million 60-kg bags this season, which began in October.

Prices for arabica coffee skyrocketed to a 13-1/2 year high this week, trading above $2.20 per lb, underpinned by fund buying and tight supplies in part because of low Colombian output. Coffee has risen more than 55 percent in 2010 on the Reuters Jefferies Commodity Index.
Mauricio Bernal, the head of Colombia's coffee export association, said at the Sintercafe coffee conference he was "less optimistic" than F.O. Licht about Colombia's production levels, which the association sees at 9 million bags.

The crop has been hit by bad weather and a fungus, he said. Colombia has been renovating trees and is expected to bounce back to its previous levels of around 12 million bags by 2013/14, Bernal said.


Source: Reuters
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