Coffee markets ‘face volatility’, as ‘monstrous’ Brazil crop looms
Weather is to take centre stage in coffee markets, which will “likely” be marked by increasing volatility, as investors balance thin short-term supplies with the potential for a “monstrous” Brazilian harvest next year, Rabobank said. The bank hiked by 2.8m tonnes to 2.5m tonnes its forecast for the world coffee production deficit in 2017-18, citing an increased estimate for global consumption, and reduced estimates for output in Brazil, following a recent crop tour, and Indonesia, after heavy rains.
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