Rabobank says it is ‘slightly bullish’ on the coffee price in 2018, despite a potential surplus, and expects demand for cocoa to continue to grow.
In the latest edition of its annual outlook report, Rabobank said it expects global demand for coffee to continue to grow, leading to a slightly bullish view on prices next year, despite a potential 3 million bag surplus in 2018/19.
Demand for cocoa also continues to rise, driven by developing nations’ taste for luxury commodities, though large global stocks mean price spikes are unlikely.
Rabobank said: “As ever, various factors are at play when looking at prospects for next year, but in the case of coffee and cocoa, prices are supported by rising demand, particularly from emerging markets.”
The annual outlook report, now in its eighth year, is produced by Rabobank’s specialist team of agricultural commodity markets researchers based around the world.