Coffee prices seen rising slightly by end-2020 despite higher surplus – Gulf Today

  • Date: 03-Aug-2020
  • Source: Gulf Today
  • Sector:Oil & Gas
  • Country:Gulf
  • Who else needs to know?

Coffee prices seen rising slightly by end-2020 despite higher surplus – Gulf Today

Coffee prices seen rising slightly by end-2020 despite higher surplus

an hour ago

Coffee beans. File

Coffee prices, both for arabica and robusta futures, are seen rising slightly by the end of 2020 from current values despite an overall view of a larger surplus in the 2020-21 season, a Reuters poll of nine traders and analysts showed on Monday.

Arabica futures are seen finishing the year at $1.20 per pound, 0.9% higher than the settlement on Friday, while robusta futures are seen at $1,390 per tonne at end-December, 3.42% up from last week's settlement.

"Challenging times for many commodities," said futures strategist Stephen Platt, citing the influence of stimulative policies in one side and the impact in demand caused by the coronavirus pandemic in the other. 

A cup of coffee. File

"The virus has likely helped consumption of lower quality coffee in key consumers including Brazil while decline in institutional sales in industrialized consumers being partially offset by higher consumption at home," he said.

The experts see a global coffee surplus growing from 1.85 million 60-kg bags in 2019-20 to 5 million bags in 2020-21, mostly due to a larger supply of arabicas amid weaker demand for the high-quality variety. Coffee shops around the world, which stayed closed