Morning Softs Commentary for Feb 27, by Jack Scoville

COFFEE


General
  Comments:Futures
  were higher yesterday, and once again held some support areas.It  still seems that New York is trying to  form a low in this area.Some  support  came from news that Colombia Coffee farmers will not deliver as they
seek higher  prices for crops so they can cover costs and even make a small  profit.Reports of rust in Central
America and the  production cuts that it is causing are getting more  attention.For now, it looks like Central
America could  lose at least 20% of the total crop this year and more next  year.Losses next year could be 30% or
more of the  crop.Current crop  development is still  good this year in Brazil, and production areas are getting
drier weather for the  developing crop.There is some talk the  drier weather could  stress trees.Production ideas remain big  there, and also remain big in Vietnam even  though producers there talk about  the potential for 25% crop losses.Central America crops are mostly   harvested.Colombia is reported to have   good conditions.