Mexican Coffee output bounces back to levels ahead of rust outbreaks

Mexican Coffee

The Mexican Coffee output is set to bounce back and is expected to close the market in levels before a devastating outbreak of rust, which is a good sign for its futures. Mexico is one of the major exporters in the U.S. which leaves investors with a positive notes when is comes to agricultural commodities trading.

Mexico’s coffee harvest for 2017-2018 is expected to reach 3.08 bags. The U.S. Department of Agriculture Bureau in Mexico City stated this in its first estimates for the next season.

The sudden bounce back of the coffee futures was unexpected especially with last season’s harvest that was depressed by an epidemic of the roya, or rust, fungus, which reflects a benign weather.

The 3.8 million bag harvest has not been reached since 2013-2014, just as the disease that causes a defoliation and sometimes death of trees was beginning to damage productions.

The increased output will allow Mexican exports to reach 3.10 million bags, which is an increase of  300,000 bags compared to last years harvest, and is currently the highest figure since 2012-2013.

Although these numbers are looking good for the exporters, in recent days, the trade tension between various countries have been centred on allegations that Mexico has been “dumping” in the U.S.

With that, Mexico has sought to finds an alternative suppliers for the many major agricultural commodities like Coffee, Soybeans and corn.  Which the U.S. imports a lot from Mexico


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