Colombia drops its 2011 coffee production forecast after July’s harvest was less than expected due to adverse weather conditions, Bloomberg reported Thursday.
Head of Colombia’s National Federation of Coffee Growers Luis Muñoz said production is likely to be 9 million bags, down from 9.5 million bags predicted in May. Coffee production in July registered a 32% decrease on the previous year at 530,000 bags from 787,000 bags one year ago.
The June coffee harvest registered a severe decrease of 40% from 780,000 in 2010 to 471,000 in 2011 said the federation. Colombia is the second biggest producer of arabica beans after Brazil.
Storms in Colombia are hampering efforts to recover coffee production from a 33-year low in 2009. Muñoz said there are enough global stockpiles to supply about two months of consumption, which may keep coffee prices above $2 a pound.
The price of arabica coffee for December delivery rose by 2.4% or $0.057 to $2.4405 a pound on ICE Futures U.S. in New York.