Dec. 9 (Bloomberg) -- Rains and a cold front are delaying coffee deliveries in Honduras, Central America’s largest producer, according to Volcafe, the coffee unit of commodities trader ED&F Man Holdings Ltd.
Honduras will produce a record 4.6 million bags of 60 kilograms (132 pounds) in the 2011-12 season, up from 4.2 million bags last season and a previous estimate of 4.4 million bags, the Winterthur, Switzerland-based trader said in its latest quarterly report.
“Internal market prices are firming up as exporters need to cover their nearby commitments,” Volcafe said in an e-mailed note to clients today. “Fresh outside interest was noted from different regions,” it added.
Beans from Honduras for shipment in January and February were at a discount of 2 cents a pound to the price on the ICE Futures U.S. exchange today, Volcafe data show. That compares with a discount of 1 cent a pound last week, according to the data.
Coffee from Colombia, the world’s second-largest producer of arabica beans, was at a premium of 22 cents a pound above the exchange price for January and February shipments, unchanged from last week, the trader said.
Colombian export registrations for October, November and December so far have totaled 1.76 million bags, “a disappointing volume,” Volcafe said.
Arabica coffee for March delivery gained 0.3 percent to $2.2925 a pound by 10:28 a.m. on ICE Futures U.S. in New York. Arabica beans are grown mainly in Latin America and brewed by companies such as Starbucks Corp.
--Editors: John Deane, Claudia Carpenter
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.