Coffee supplies ‘even more comfortable’ after ICO upgrade, says Commerzbank
The “supply situation” in coffee “now looks even more comfortable”, Commerzbank said, after the International Coffee Organization nudged higher its forecasts for stock builds in both this season and last.
The ICO raised by 94,000 bags to 1.18m bags its estimate for the world coffee production surplus in 2017-18, reflecting a similar increase in the output forecast to a record 158.8m bags. And for 2016-17, which ended in September, it raised the estimate for the output surplus by 257,000 bags to 2.63m bags. Again this reflected a higher production estimate, lifted by 257,000 bags to 157.7m bags “After the ICO had already switched in November from predicting a deficit to a surplus for [2016-17], and has again revised this figure slightly upwards, the supply situation now looks even more comfortable,” Commerzbank said.