kude.punny

Robusta Coffee Falls in London on Vietnam Crop Speculation

Robusta coffee fell in London to the lowest in more than two weeks on speculation favorable weather may boost the harvest in Vietnam, the world's top grower.

``Scattered rains have been in or near the coffee belt of southern Vietnam during the past week,'' U.S. weather forecaster Meteorlogix LLC said in a report today. Rainfall is needed to support the next flowering period for coffee, it added.

``Prospects for another large Vietnamese crop in 2007-2008 could induce a weakening of prices,'' Warren Robertson, an analyst with Fortis Bank in London, said in an e-mailed report.

Robusta for September delivery dropped $37, or 2 percent, to $1,792 a metric ton on London's Liffe exchange. That's the lowest close for robusta since July 27.

Vietnam's 2007-2008 crop may produce 17.4 million bags, Fortis said, citing a July poll of coffee traders by Reuters.

The country produced more than 20 million bags of coffee, at 60 kilograms each, in the previous crop year, Fortis said. Bloomberg

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