The coffee crop in Brazil, the largest global producer of the commodity, should decline 15% next year, to 57.4 million bags of 60 kg, projected the Dutch bank Rabobank on Monday, indicating the world production below demand expected for 2021/22.
The estimate falls short of the projection given by Rabobank at the end of last month, when the institution saw the Brazilian crop at 60.7 million bags.
The bank also expects the world's second largest producer, Vietnam, to register a 5% increase in its harvest in 2021/22, reaching 30.3 million bags, while Colombia's harvest - the third largest producer - should 14.4 million bags.
Analysts at the Dutch institution, a major creditor in the agricultural sector, see global coffee production dropping 4.5% in 2021/22, to 166.6 million bags, while demand is expected to rise 1.8% to 167 , 6 million bags.
Rabobank, however, does not see a strong market reaction to the deficit, stating that there will be sufficient stocks from the previous harvest to meet demand
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