Rabobank lifts forecast for world coffee output deficit next season
Coffee prices are vulnerable to a recovery on any weather setback in Brazil, Rabobank said, as it raised by 1.0m bags its forecast for the world production deficit next season, thanks to increased consumption hopes.
The bank acknowledged that coffee futures – which in the last session tumbled nearly to 11 month lows in New York, as the Brazilian real tumbled on allegations that President Michel Temer had bribed a witness – could yet see further declines for now. “In the short term, we can see some further downside [to prices],” said Rabobank analyst Carlos Mera. “Funds have been keen sellers,” against a backdrop of a rise in visible inventories, while the real “remains a potential dominant bearish factor”.
More: http://www.agrimoney.com/news/rabobank-lifts-forecast-for-world-coffee-output