Brazilian coffee beans will have a bumper harvest this year, but their prices have plummeted.

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After years of soaring coffee bean prices in Brazil, many cash-rich farmers have expanded their investment in coffee beans, but with this year's harvest approaching, coffee beans are expected to have a bumper harvest.

After years of soaring coffee prices in Brazil, many cash-rich farmers have expanded their investment in growing coffee beans

After years of soaring coffee prices in Brazil, many cash-rich farmers have expanded their investment in coffee beans, but the prospect of a bumper harvest and abundant supply has led to a continued decline in coffee bean prices as a result of this year's harvest. Futures and options also show that coffee bean prices continue to be bearish. Agence France-Presse

The outlook for abundant supply has led to a continued decline in coffee bean prices, and futures and options positions also show that coffee bean prices continue to be bearish.

Brazil is the world's largest producer and exporter of Arabica coffee beans, and local farmers and traders generally expect a bumper harvest this season after four days of fieldwork, Bloomberg reported. Farmers in Minas Gerais are optimistic about yields in the 2018 season, as most coffee trees enter a bumper harvest.

Brazil's national coffee bean production, including the Robusta variety, will grow by 30 per cent to a record high this year, according to Conab, the Brazilian farming forecaster.

DiGiacomo, a farmer who owns two Arabica bean farms with a total area of 130ha in Minas Gerais, said he expected to harvest 3200 bags of 60kg coffee beans this year, up 1/3 from last year. He recently planted new trees and expects to produce 5000 bags in 2019.

The plentiful supply outlook also highlights why coffee beans have been at the bottom of the Bloomberg Commodity Index over the past year. In the past year after the suspension of trading on the 12th, the price of Arabica coffee beans in the New York futures market has plummeted 15.8% to 1.191 US dollars per pound.

Hedge funds also continued to bet that coffee prices would fall, with fund managers betting on Arabica coffee beans net short in the week ended June 6, with about 50700 contracts, according to the Commodity Futures Trading Commission (CFTC).

In anticipation of a fall in the price of coffee beans, Digiacomoin began to clear stocks from last year's harvest and even sold this year's harvest ahead of time. Although his trading price has fallen to about 460 lire ($141) a bag this year, down from 480 to 570 lire last year, he is still profitable after deducting his cost of 280 to 350 lire per bag. "it's like a gambling game," DiGiacomo said. "you can't sell it at a high price every year."

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