Brazil’s Conab forecasting agency has confirmed that the 2018/19 Brazilian coffee crop is likely to set a new record of 59.9 million bags.
Conab’s prediction is now around 2 million bags higher than its May 2018 estimate.
As Commerzbank Research noted, this would be a third more than last year’s disappointing crop, with both coffee types set to record increases.
Conab now forecasts 45.9 million bags of Arabica, up from 34.2 million bags last year, and 14 million bags of Robusta, up from 10.7 million bags in 2017/18.
90 per cent of the crop had already been harvested at the time of forecasting.
The Robusta price was able to hold its own at the news, but the Arabica price – having already hit a 12-year low – shed 1.5 per cent to 95.9 US cents per pound.