Coffee’s ups and downs

Market Pulse: October 15

Fundamentals

Earlier this month we read that coffee production in Vietnam may drop from the all-time high of 1.6 million tons on dry weather crimping yields. This past week favorable weather in Brazil was seen as a potential benefit to the upcoming coffee crop. Rains improve flowering prospects. Why does this affect coffee prices? Read the table below to see the top 10 coffee producers worldwide in 2011 and 2010. Yes, Vietnam is the second largest coffee producer. More amazing than that is Brazil produces almost 2½ times more coffee than Vietnam and almost the same amount produced by 3-10 combined! And look at where Ethiopia was in 2010 and how this country moved up in 2011. The price action we need to watch this week is closes below and above $1.6000. 

10 Biggest Coffee Producers 2011 and 2010

2011

2010

Brazil

Brazil

Vietnam

Vietnam

Ethiopia

Indonesia

Indonesia

Colombia

Colombia

India

India

Ethiopia

Peru

Peru

Mexico

Guatemala

Honduras

Mexico

Guatemala

Honduras

Have a prosperous trading week. 

To see my market views daily you can follow me on Twitter at http://twitter.com/TrendsinFutures

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