Arabica coffee beans of good cup quality from Brazil, the world’s largest producer of the commodity, were trading at a discount this week, with a U.S. roaster buying, according to Flavour Coffee.

The beans traded at a discount of 18 cents a pound to the price on the ICE Futures U.S. exchange in New York, the Rio de Janeiro-based broker said in a report e-mailed today. That compares with a discount of 19 cents a pound last week. Arabica coffee futures slid 0.2 percent over the past week as a record crop in Brazil continued to put pressure on prices. The commodity has dropped 37 percent this year, making it the worst performer in the Standard & Poor’s GSCI gauge of raw materials.

“Reasonable volume of good cup qualities traded this week, all for nearby January shipments,” Flavour Coffee said. “It is noticeable a purchase made from one major USA roaster.”

Arabica coffee beans of fine cup quality were at a discount of 10 cents a pound to the futures price, according to the broker. That compares with 9 cents a pound a week earlier. Fine cup beans are usually more expensive due to their taste profile.

Coffee output in Brazil this year rose more than previously forecast to a record 50.8 million bags, the government said this week. The estimate was raised from 50.5 million bags forecast on Sept. 6, the Agriculture Ministry’s Conab crop-forecasting agency said. A bag of coffee weighs 132 pounds.

CONILLON PREMIUM

Conillons, as Brazilian robusta beans are known, were at a premium of 12 cents a pound ($265 a metric ton) to the price on the NYSE Liffe exchange in London, down from 15 cents a pound a week earlier, according to Flavour Coffee data. Offers for beans from the next crop, with shipment in May and June, were at a premium of 5 cents to 7 cents a pound, the broker said.

Arabica coffee is grown mainly in Latin America and favored for specialty drinks such as those made by Starbucks Corp. (SBUX) Robusta beans are harvested mainly in Asia and parts ofAfrica and are used in instant coffee and espresso.

Robusta coffee for March delivery slid 0.6 percent to $1,876 a ton by 9:39 a.m. in London. Arabica coffee for March delivery was unchanged at $1.4295 a pound in New York.