Coffee May Rise 10%

Issues: as Rain, Fungus Cap Supply, Kanematsu’s Kobayashi Says

By Aya Takada and Ichiro Suzuki – Nov 3, 2010 Coffee may extend a rally to $2.15 a pound by the end of this month as supply from Colombia, the second-largest producer of arabica beans, may be smaller than forecast, said Japanese trading company Kanematsu Corp.

“We had expected Colombian production to recover to 10.5 million bags next year. But output may be less than 10 million,” said Daisuke Kobayashi, trader at the beverage ingredients section of Tokyo-based Kanematsu, Japan’s largest importer of specialty coffee.

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