April 20, 2024 | 03:51 GMT +7
April 20, 2024 | 03:51 GMT +7
Hotline: 0913.378.918
Dutch bank Rabobank, which has a strong footprint in the agricultural sector, said it now projects a global balance supply deficit of 2.6 million 60-kg bags in 2021/22 compared with 1.1 million bags seen in December.
“We trim our 2021/22 production number by just over 2 mln bags - 1.2 mln bags of this drop comes from a downward adjustment in Brazil,” the bank said in the report produced by analysts Carlos Mera and James Watson.
Rabobank now expects the new Brazilian crop at 56.2 million bags versus 57.4 million bags seen in December. The bank also reduced the expected crop out of Colombia, a producer of fine mild arabicas, by 300,000 bags to 14.1 million bags.
The deficit is not larger because the bank reduced its view for total demand by half a million bags.
“Net imports in non-producing countries continued to come in weak in Q4 2020,” the bank said, citing a 1.9% drop in what it calls “coffee disappearance” in Europe plus UK and a 9.5% drop in Japan.
Also, there is a large carryover volume from the previous season as the surplus in 2020/21 is seen at 10.5 million bags.
Rabobank thinks arabica coffee prices should not stay above $1.30 per pound (in the second contract in the New York futures chain), but said that “factors like speculation, shipping costs, and increased demand for inventories could cause that scenario.”
Coffee prices jumped 4.5% on Monday, hitting the highest level since December.
Reuters
(VAN) Green Poultry Farm is a concept from Mozambique, specifically created to address the problem of environmental pollution associated with poultry farming. The innovation was recently awarded.
(VAN) U.S. wheat prices have plummeted as cheap supplies from the Black Sea and Europe replenished global stocks of the staple grain, and as plentiful corn harvests worldwide pressure the entire commodity grains complex.
(VAN) Commission on Phytosanitary Measures “indispensable” amid changing weather patterns, FAO Director-General says.
(VAN) The British Food Standards Agency (FSA) is worried about a renewed increase in the number of cases of Salmonella in poultry meat, poultry products and eggs from Poland.
(VAN) A worm-filled gel has been shown to protect crops from pests, without the use of environmentally-unfriendly pesticides. Its not-so-secret ingredient is scores of tiny nematodes, which ordinarily can't survive outside of their underground habitat.
(VAN) It is so hot Yapi can work only in the morning, leaving plenty of spare time to dwell on his losses.
(VAN) The differential between per capita income growth in the poorest countries and the richest has widened over the past five years, according to the report.