*Itau Sees Upside Outlook for Coffee Prices on Deficit in 2021-22*

(Bloomberg) -- Global market seen shifting to a deficit in next year’s crop as weather has affected prospects in Brazil, Vietnam and in other key producing countries, Cesar de Castro Alves, agribusiness consultant at Itau BBA, says in webinar..
• Sees world shifting from a surplus of 9.8m bags in 2020-21 to a deficit of 1.7m to 6.5m bags in 2021-22, depending on the drop in Brazil´s harvest next year
o The biggest deficit scenario considers a decline of about 30% in Brazil’s 2021 output
• “The size of global coffee demand is still a unknown factor,” he says
• Brazil coffee farmers have accelerated forward sales for 2021 crop and for the next
• A drop in next year’s harvest could trigger some difficulty for farmers to deliver volumes set in contracts, he says
• NOTE: Brazil Coffee May Face Drought Impact Into 2022 Season: Marex