Robusta coffee fell in London as rainfall in growing regions of Vietnam, the world’s largest producer of the robusta variety, eased concerns a drought earlier this year would cut output. Cocoa advanced.
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.
Robusta coffee rebounded in London on speculation exchange data due later today will show stockpiles declined as beans from producing countries are trading at a premium. Sugar fell and cocoa swung between gains and losses.
Coffee sales in Vietnam, the biggest grower of robusta beans used by Nestle SA in instant drinks, climbed as local prices surged last month and on speculation that rain will ease a drought in the main growing region.
Coffee bean deliveries to Bandar Lampung, where Indonesia’s main export port is located, slowed at the start of the season because local roasters are buying, according to Amsterdam-based trader Nedcoffee BV.
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.
Robusta coffee fell in London on speculation investors will continue to sell the futures just as crops start being harvested in Brazil and Indonesia, the second- and third-biggest growers of the variety. Cocoa rose.
The coffee harvest in Vietnam, the biggest grower of the robusta variety, may decline in the 2013- 2014 season as a drought in the country’s top producing region may lead to smaller fruits, potentially boosting prices.