(Ecofin Agency) - Rabobank analysts forecasted that for the 2018-19 season, global coffee surplus will stand at 3.8 million bags, up 600,000 bags compared to last March’s estimate. Reuters reported mentioning the group’s quarterly Coffee Outlook report.

According to Rabobank, Arabica surplus is set to reach 3.3 million bags while Robusta will have a surplus of 500,000 bags. Despite this market overflow, the bank pointed out that bad weather in Brazil could slow production and increase world price volatility.

“In Espirito Santo and Mata Zone, where Arabica is usually harvested as of early May, rainy conditions have caused delays and potentially quality damage,” Rabobank explains.

Let’s recall that the world deficit is set to stand at 3.6 million bags for the ongoing season (2017-18).

Espoir Olodo