The coffee harvest in Vietnam, the largest grower of robusta beans used by Nestle SA in instant drinks, will probably increase to the highest level in two years as rain this month ended drought in the main producing region.
Coffee production from Dak Lak in Vietnam, the principal growing region in the world’s largest robusta producer, may increase 5.3 percent after good weather aided flowering, according to the local government.
The coffee harvest in Vietnam, the biggest grower of robusta beans used by Nestle SA in instant drinks, may decline for second year because of drought in the main growing regions, according to a producers’ group.
The biggest rally in coffee in five years may be ending as the prospect of larger harvests spurs hedge funds to pare bets on higher prices, potentially cutting costs for J.M. Smucker Co., Kraft Foods Inc. and Starbucks Corp.
Record robusta harvests in Vietnam and Brazil and potentially the biggest jump in Indonesian output in 16 years are boosting supplies of the coffee used in instant drinks and espressos as slowing economic growth threatens demand.
Coffee exporters in Vietnam, the world’s biggest grower of the robusta variety used in instant drinks, may slow shipments as rains in the central highlands increase concern about harvest delays, traders and growers said.
Coffee production from Vietnam’s main growing province may jump 10 percent this season as bean quality climbs, producers and the government said, bolstering forecasts that a record nationwide crop will swell global robusta supplies.