Lower Brazil output could lead to small supply deficit on world coffee market

Feb. 24, 2021

The 2021-2022 coffee season is projected to experience larger deficits on the global market, according to Dutch bank Rabobank, as output from Brazil, a main supplier, will likely be smaller due to below-average rains, Reuters reported.

Rabobank, which has a large footprint in the food and agricultural sectors, is forecasting a global balance supply deficit of 2.6 million 60kg. bags in 2021/22, compared with 1.1 million bags seen in December, Reuters said. 

Coffee prices rose 4.5% on Monday, the highest level since December. However, Rabobank expects arabica coffee prices will not stay above $1.30 a pound.


International Coffee Organization
ICO composite indicator shows movement of daily coffee prices over past two years. (Source: ICO 2020 Coffee Report)
Coffee Service

ICO Report: Arabica Coffee Prices Increase in December

Jan. 7, 2021
Coffee market observers see a pending rally in prices of historic scope. Resurgent demand for coffee and climate in growing regions will determine how high prices go in 2021. ...