(Bloomberg) -- Robusta coffee futures rose as traders monitor rainfall levels in Vietnam, the world’s top producer of the beans, amid concerns over potentially lower production. 

Parts of the Southeast Asian nation will likely receive enough rain to slightly boost soil moisture, though the amounts have been overestimated, according to weather forecaster Maxar. Hot and dry weather that baked vast parts of Vietnam earlier this year damaged coffee trees, raising concerns about the next harvest.

“The market will be keeping a keen eye on the weather in Vietnam during its wet season to see if next year’s crop can recover from Vietnam’s April drought,” Rabobank analysts said in a report. “Looking forward, normal levels of precipitation are expected in Vietnam the coming week.”

Still, coffee prices could fall with hedge funds’ “extreme” net-long positions in futures at risk of unwinding as weather improves and length stretches to historical breaking points, analysts at Bloomberg Intelligence led by Mike McGlone said in a note. 

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