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BLBG: Coffee Falls on Prospect of Accelerated Shipments From Vietnam
 
Robusta coffee fell in London as a drop by the currency of Vietnam, the world’s biggest producer of the beans, raised the prospect of accelerated shipments.

The dong fell the most since December against the dollar after Vietnam’s central bank widened the currency’s trading band to boost exports. The country’s robusta harvest in the crop year ending in September will rise 9.9 percent from the prior period to 21 million bags, Fortis estimates.

“With the dollar strengthening against the dong, more coffee should find its way from the farmer to the exporter,” said Angus Kerr, owner of coffee trading company Coffee ag in Cobham, England. “Even the little farmer up the hill looks at the dollar.”

Robusta for May delivery fell $8, or 0.5 percent, to $1,574 a metric ton at 10:49 a.m. local time on NYSE Liffe. Prices for the most-active contract have climbed 1.9 percent this year.

Vietnam’s harvest can last until July because some shaded beans need more time to ripen, Kerr said. The bulk of the harvest is over by April, he said. Robusta beans are used in instant coffee and espresso. A bag of coffee weighs 60 kilograms (132 pounds).

Robusta may rebound to $2,000 a ton by the end of the year, according to Kerr.

“The world is using more robusta, and effectively all the crop forecasts I’ve seen for Vietnam and Brazil have been for a lot of coffee,” he said. “Optimistic pictures have been painted for coffee,” and bad weather stands to turn the market around, Kerr said.

The worldwide economic slump won’t necessarily reduce consumption of coffee because more people will make beverages at home, he said.

Among other agricultural commodities traded in London, cocoa for May delivery fell 4 pounds, or 0.2 percent, to 1,918 pounds ($2,814) a ton. White, or refined, sugar for May delivery slipped 70 cents, or 0.2 percent, to $405.50 a ton.

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