SOCGEN BULLISH SUL COFFEE
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Agrimoney.com | SocGen negative on ags - but with exceptions
'Extremely undervalued'
The bank also took a contrarian stance on coffee, which commentators such as Macquarie have said appears set for price weakness, given early indications point to a strong Brazilian 2013 harvest, and potentially a second successive season of world production surplus.
However, Colombia, whose output has been undermined for some years by disease and the implications of a replanting programme, remains "an upside risk to prices".
And inventories of 2.5m bags certified for delivery against New York futures, while on a rising trend, remain weak by past standards.
"Coffee prices appear to be extremely undervalued.
"The sell-off in coffee is overdone as the market does not fully appreciate how historically low inventories are,."