BRAZILS coffee crop is forecast to be up to 15% below the official forecast of 33.95 million 60kg bags, made in July this year. Futures markets are expected to turn bullish if this turns out to be the case on the expectation of a tightening of world supplies.
The fall is attributed to various micro-climactic conditions, including irregular rainfall.
World demand for coffee is continuing to grow. It stood at 100m 60kg bags in 1997.
The International Coffee Organisation (ICO) which meets in London in September is under pressure from Brazil to make reforms. It wants: private sector companies to be included in ICO membership; better statistical information; and more money for a global coffee consumption programme.
- Financial Times 03/09/98 page 36