Robusta coffee falls before record Vietnamese crop

LONDON: Robusta coffee fell for a second day in London in anticipation of a record crop in Vietnam, the world’s biggest producer of the variety. Cocoa gained in UK trading on speculation processing data will signal more demand.

Vietnam will harvest a record 29 million bags of coffee in the season started this month, forecasts Macquarie Group ED&F Man Holdings’ Volcafe unit projected a 30 million-bag crop in August and raw-materials trader Olam International expects 28 million bags.

Prices are falling after rallying 6.1% last week, the biggest gain since February 2012 for a most-active contract. “Momentum from the recent sharp rally continues to fade,” Sterling Smith, a futures specialist at Citigroup in Chicago, said on Tuesday.