Dry Weather Shrinks Bearish Coffee Bets
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A woman harvests coffee cherries at a plantation on the slopes of the Agua volcano near San Miguel Escobar, Guatemala, on Thursday, Dec. 17, 2015. Coffee exports rose in November by almost 1.2 million pounds, compared to a year earlier, according to a report from the National Coffee Association, known as Anacafe.
Photographer: Nadia Sussman/BloombergDry weather across coffee-producing regions is starting to diminish the outlook for this year’s crop and forcing investors to trim their bets that prices will fall.
Below-average rain is forecast for the next 10 days in Brazil’s Espirito Santo state, a region that saw yields decline over the past two years, according to MDA Weather Services. In Colombia, growing areas got as little as 10 percent of normal precipitation during the past month. The countries are the world’s top growers of arabica coffee.