India's Tata Coffee surges nearly 9% as prices jump on supply disruptions

Tata Coffee

31/08/2021 09:15

** Shares of the coffee and tea producer  TACO.NS  rise as
much as 8.7% to 216.25 rupees 
    ** Global coffee prices continue to soar on production
disruptions from top suppliers including Brazil and Vietnam
 urn:newsml:reuters.com:*:nL1N2Q11M8
    ** November robusta coffee  LRCc2  held its price from
Friday of $2,018 a tonne. The contract hit a four-year peak of
$2,045/tonne on Friday 
    ** Since Vietnam is in a lockdown now, prospects for Tata
Coffee has increased, said Vishal Balabhadruni, senior research
analyst at CapitalVia Global Research
   ** The kind of coffee grown in India and Vietnam are similar
- Balabhadruni
    ** In a note published early this month, Rabobank analysts,
however, see a large surplus in 2020/21 for coffee, given a
record Brazil crop and lower demand
    ** Given the shipping disruptions, the increase in working
stocks and worsening forward expectations on future
availability, this surplus has not been pressuring prices,
Rabobank said
    ** About 13.6 mln TACO shares change hands vs 30-day avg of
~ 6 mln shares
    ** TACO shares have surged 90.1% so far this year as of last
close

 (Reporting by Nallur Sethuraman and Rama venkat in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (Within U.S.
1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging:
nallur.sethuraman.thomsonreuters.com@reuters.net))