Jan. 6 (Bloomberg) -- Dry weather in Colombia, the world’s second-largest producer of arabica coffee, is “good news” for the flowering of the country’s next main crop, according to Volcafe, a unit of commodities trader ED&F Man Holdings Ltd.
Colombian growers usually harvest the main crop from October to December and a smaller crop, known as mitaca, from April to June. Production in the Andean nation in the last three seasons has fallen below the 2007-08 level as rains curbed output. Colombia’s crop was 12.5 million bags in 2007-08, according to the U.S. Department of Agriculture.
“The rains have stopped,” Volcafe said in a report to clients e-mailed today.
Trading of beans in Colombia should increase next week, Volcafe said. Colombian coffee for shipment in February and March was 26 cents a pound above the price on the ICE Futures U.S. exchange in New York, up from 22 cents a pound a week earlier, the trader said.
Arabica coffee for March delivery fell 0.8 percent to $2.178 a pound by 9:57 a.m. on ICE Futures U.S. in New York. Arabica coffee is grown mainly in Latin America and favored for specialty drinks such as those made by Starbucks Corp.
--Editors: Claudia Carpenter, John Deane
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.