ICO forecasts deficit of 8 million bags on the global coffee market in 2014/15

The International Coffee Organization (ICO) is now predicting a deficit of at least 8 million bags on the global coffee market in 2014/15, which is somewhat higher than its previously published estimates. Weeks ago, the ICO had already cited a global production volume of just shy of 142 million bags, notes Commerzbank. 

The ICO believes it is still too early to make any market balance prediction for 2015/16. The weak Brazilian real coupled with good harvesting weather in Brazil are continuing to weigh on the Arabica coffee price. After rising for two weeks to 141 US cents per pound, it fell by nearly 4% again since the middle of last week.