The Coffee market is in a ”period of reckoning” in discovering how the poor start in Columbia’s mitaca harvest has significantly put the market into long-term setbacks, a statement from the veteran analyst Judith Ganes-Chase.
Colombia's coffee output in April which is the first harvest of Mitaca coffee beans. The harvest has tumbled to 20% if compared to last year’s harvest to 834,000 bags which is the weakest monthly figure for more than two years. This data was gathered from the Colombia Fedecafe producers’ group shows.
However, it is uncertain to how much of the April figure represented merely delays in production, which is all thanks to delayed blossoming or more permanent production losses.
The USDA, whose data set industry benchmarks, forecasts 2016-2017 coffee output from columbia the third-ranked grower after Brazil and Vietnam at 14.5 million bags a rise of 500,000 bags year to year.
In fact, much may depend on the rains which are falling in some coffee growing districts which adds concerns of the delay in harvest, besides provoking some worries over results.
Thanks to Brazil freeze fears, “The month of May is known for rallies and already this month the market has bounced from the lows. Given the plunge in price in April, it would be natural to see the market snapback.” this was stated by the Ms Ganes-Chase of J Ganes Consulting.