Rain is hurting the coffee harvest in Brazil and compromising the quality of the beans, said the National Coffee Council, known as the CNC, a group that represents producers.
Heavy rain may also prevent Brazil’s coffee from producing enough to meet domestic and foreign demand, said Silas Brasileiro, the president of CNC, in a weekly report sent by e- mail today.
Coffee futures for September delivery fell 1.8 percent to $1.559 a pound on ICE, paring its weekly advance to 2.6 percent, the first in more than a month.
The price jumped 4.2 percent yesterday on concern that heavy rains in growing areas of Brazil will delay the harvest and hurt the crop quality. Brazil is the world’s biggest producer.
Coffee prices have fallen 33 percent since Dec. 30 according to data compiled by Bloomberg. Brasileiro said prices should start rising by September.
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