Poor Farmer

Reuters March 17, 2012 (BOGOTA) - Colombia's coffee growers' federation on Saturday urged the central bank to stop interest rate increases that are spurring currency appreciation and reducing   earnings   of coffee exporters as they struggle with slumping production. "Colombian (coffee) exporters have been hard hit by the appreciation of our currency and the weakening of the dollar," said Luis Genaro Munoz, head of the coffee federation, during an event in the province of Huila, which recently overtook Antioquia to become Colombia's top coffee-producing region. "We are sure that government representatives in the central bank received the instructions to revise the effectiveness" of raising rates, he added during the inauguration of a mill with capacity to process 400,000 60-kg bags. The Colombian peso has appreciated 9.35 percent so far this year and 6.7 percent in the last 12 months driven partly by the strong foreign direct inves...

By Sandy Shore The Associated Press March 16, 2012 Coffee prices fell Friday on expectations that Brazilian growers will produce a bountiful harvest later this year. Coffee for May delivery fell 2.95 cents to finish at $1.8235 per pound. The price has fallen 19.3 percent this year on the prospect that global inventories could expand. Brazil's crop appears to be in good condition, prompting many traders to speculate that growers will have a good harvest in about three months. That could ease concerns about reports of lower coffee production in Colombia, analysts said. Sterling Smith, a market analyst at Country Hedging LLC, thinks that the price could fall into a range between $1.65 per pound to $1.70 per pound, but noted that could be offset by strong overall demand. Despite the falling futures prices, consumers aren't likely to get a break at the retail level because manufacturers are paying higher costs to produce and ship their products, he said. ...