Important note on Colombian production which in a way shows how NYSE levels are not related to fundamentals.
According to the latest USDA report:
“Colombia’s Arabica production is forecast down 300,000 bags to 13.3 million due to expected heavy rains towards the end of 2016. This will likely affect the mitaca crop by disrupting the flowering process as well as creating conditions conducive to the spread of coffee rust for trees not renovated to resistant varieties. The mitaca crop typically accounts for about 40 percent of total output and is harvested from the central coffee region between April and June. Also, coffee cherry borer insect infestations in this region are expected to more than double to 10 percent of planted area, reducing yields and quality. Despite this, bean exports, mostly to the United States and Europe, are forecast to gain 100,000 bags to 11.5 million “
Good note to keep in mind when booking your next Colombian lots with ICT.