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Despite rising output in 2016-17 world coffee market ends in deficit

Despite increases in coffee production while consumption decreased slightly, 2016/17 is seen in deficit for the third consecutive year. Despite increases in production while consumption decreased slightly, 2016/17 is seen in deficit for the third consecutive year, with consumption exceeding production by 1.2 million bags. However, the market has remained well supplied by stocks accumulated during surplus years in 2012/13 and 2013/14. Stocks in importing countries reached 25.4 million bags at the end of June 2017, their highest level since June 2009, which provides a buffer against any short-term supply concerns, the International Coffee Organization (ICO) said in its latest report.

Global Coffee production in 2016/17 Coffee Year (Oct-Sep) is currently estimated at 153.9 million bags, a 1.5% increase on 2015/16. Arabica production is up by 10.2% to 97.3 million bags, while Robustas are estimated down 10.6% to 56.6 million bags.

World consumption during the period estimated at 155.1 million bags.

However, the market has remained well supplied by stocks accumulated during surplus years in 2012/13 and 2013/14. Stocks in importing countries reached 25.4 million bags at the end of June 2017, their highest level since June 2009, which provides a buffer against any short-term supply concerns.

 

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