(Ecofin Agency) - In 2018/2019, the global coffee market will record a surplus of 8 million bags, the U.S. Department of Agriculture (USDA) revealed in a biannual report released June 17.

According to the Organization, while consumption will rise to 163.2 million bags, world production will reach a record level of 171.2 million bags. This abundant harvest will mainly be driven by Brazil and Vietnam, the two major suppliers.

The first country will record a cumulative stock of 60.2 million bags, a historic level with 44.5 million bags of Arabica and 15.7 million bags of Robusta. Meanwhile, Vietnam will achieve levels close to that of 2013/2014 with a record production of 29.9 million bags in 2018/2019 against 29.3 million bags in 2017/2018. If confirmed, these good supply levels will slightly drop world bean prices, already morose.

Let’s recall that last week as the price per ton of Robusta fell to lowest level in two and a half months in London, the pound of Arabica fell to its lowest level over the past month in New York.

Espoir Olodo