Coffee futures may be pricing in Colombia’s resurgence of coffee production regardless of dry weather these past few months due to replanted trees maturing. Coffee futures are up a nominal 10 points currently trading just over $1.21 per pound at the Intercontinental Exchange.
The Colombia Coffee Growers Association is watching the developments closely as the government there anticipates 2015 production to be 13M tons on the high end. The country is the world’s second largest producer of the “arabica” coffee variety.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the fundamental assessment of the coffee futures markets, “Colombia’s coffee tree replanting program has helped to ensure a rebound in that nation’s production.” Craney adds, “The volume of coffee trees planted is also helping to offset sometimes dry weather conditions and common fungal disease in that growing region.”
Coffee futures remain down with contract lows made just this past week. Coffee futures are still pricing in future supply with current demand so this is a plus for the coffee drinking public.
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