Coffee prices may rebound as dry weather hits crops

New York

DRY weather across coffee-producing regions is starting to diminish the outlook for this year's crop and forcing investors to trim their bets that prices will fall.

Below-average rain is forecast for the next 10 days in Brazil's Espirito Santo state, a region that saw yields decline over the past two years, according to MDA Weather Services. In Colombia, growing areas got as little as 10 per cent of normal precipitation during the past month. The two countries are the world's top growers of arabica coffee.