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.