NEW YORK (Commodity Online): The coffee price rose 7.8% from a nine month low in October due to the crop damage caused by the heavy rain in Central America. In India coffee prices have surged 4% for the week ended 12 th November while tea prices surged 2%, according to inflation data from Ministry of Commerce.
The coffee output in Colombia, one of the major coffee grower, is reported to dip 19% , while the exports of the commodity slowed down in Brazil.
According to the Inter Continental Exchange, the stockpiles of the commodity in the warehouse in US has fell to the lowest since 2000 as the major companies like Kraft Foods and J.M Smucker cut prices, reported Bloomberg.
The London-based International Coffee Organisation expects the production of Arabica to dip by 3.7% in 2011-12 coffee year.
Meanwhile, India’s Coffee Board has said that coffee consumption in the country is rising at an annual rate of 6% since 2000 compared. In the previous decades, the growth was just 2 %. "Apart from the high-end outlets, the consumption of instant coffee is increasing in north India. Coffee Board’s attempt is to popularise filter coffee in the region by removing the notion that it is difficult to make, Jawaid Akthar, Coffee Board Chairman recently said.
According to the Coffee Board, India's production for 2010-11 was 302,000 tons and for 2011-12, the production forecast stands at 322,250 tons.
On ICE, the coffee for December delivery traded down 0.55% to $2.31 a lb on 24th November.
