Any hopes that a flood of coffee exports from Asia’s major growers would take the heat out of a blistering rally that’s pushed robusta prices to the highest since the 1970s are fading fast.
Vietnam produces around a third of the worldwide supply of the variety that’s mostly used for instant drinks and espresso blends, but a drought followed by weeks of heavy rain has hit the nation’s coffee belt hard just before harvesting that starts in October.
The climatic extremes, and a shrinkage in the amount of land devoted to coffee growing, will cut the country’s harvest by about 10 to 15 per cent this season.
Source: Bloomberg
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