[T.S.R:17373] Bumper Brazilian Arabica Crop in 2011, Could Floor Tata Coffee PE By Half. Stock Could Lose 30-40 per cent to Rs 400/share

Brazilian coffee harvest may rebound 12 percent next season as producers take advantage of a doubling of prices in the past year, according to the International Coffee Organization.

The world's biggest producer of arabica beans will "match or even exceed" the 48 million bags reached last season, ICO Executive Director Jose Sette said today in a telephone interview from Istanbul. Current prices give "all sorts of incentives for growers" to maximize production, which is expected to be around 43 million bags this season, he said. 

Arabica coffee reached a 14-year high on May 3 as adverse weather hampered production in Colombia. The Andean nation is the second-largest producer after Brazil of mild arabica beans used by specialty brewers like Starbucks Corp. (SBUX)

 

Arabica coffee for July delivery fell 0.15 cent to $2.8740 a pound at 2:00 p.m. on ICE Futures U.S. in New York. Earlier, it gained as much as 2.3 percent. Coffee reached $3.089 a pound on May 3, the highest since May 1997.

 

Higher prices will slow global coffee demand growth in 2011 from last year, when consumption climbed 2.4 percent to 134 million bags, according to Sette. Consumption growth this year will be less than that of last year or unchanged, he said.

 

Worldwide, production will be little changed in the crop year beginning in 2011 from the prior season's estimated 133 million bags because of the lower-yielding half of a two-year cycle in Brazil. Output will be a "bit less or almost equal," he said.

 

Brazil produced a record 48.5 million bags in 2002, according to Brazil's Agriculture Ministry's crop forecasting agency, known as Conab.
 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

--
For Anything related with Stock market be Online at
http://www.niftyviews.com/
 
Get free updates on your mobile phone. Sms "Join TSR " and send to 09223492234
 
FOR TRIAL STOCK/NIFTY/OPTION CALLS
 
 
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group.
To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
 
To unsubscribe email
Stockresearcher-unsubscribe@googlegroups.com
 
for more info visit
http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB
.
This is Not a Spam Mail.
Disclaimer :-
"The opinions expressed by the members on this board are based on
their individual experience and perceptions and to share information
with other members with the best of intentions to help fellow members
in investment decisions as equity investment is a risky venture."