Colombia Cuts 2.011 Coffee Forecast After July Crop Slumps

Colombia, the world’s second largest supplier of arabica coffee beans, trimmed its production forecast for the year by about 5.6 percent after last month’s crop slumped because of adverse weather.

Production will likely be 9 million bags, Colombia’s National Coffee Growers Federation Chief Executive Officer Luis Munoz told reporters today in Bogota, down from a forecast of 9.5 million bags in May.

Output in July tumbled to about 530,000 bags from 787,000 bags a year earlier, the federation said.

Storms in Colombia have hurt a recovery in the nation’s harvest from a 33 year low in 2.009.

Global stockpiles are enough to supply about two months of consumption, which may keep coffee prices above $2 a pound, according to Munoz.

“There isn’t any inventory,” he said. “the market should have a floor of about $2.”

Arabica coffee for December delivery rose 5.70 cents, or 2.4 percent, to $2.4405 a pound on ICE Futures U.S. in New York as of 2 p.m. New York time.

Concern about economic growth in the U.S. hasn’t reduced consumption, he said.

Colombia’s crop slumped 40 percent in June to 471,000 bags from 780,000 bags a year earlier, the federation had said.

Brazil is the largest producer of arabica coffee beans.