By Marcelo Teixeira
NEW YORK, Sept 1 (Reuters) – Global exports of coffee fell 11% in July compared to the same month a year earlier, to 10.61 million bags, the International Coffee Organization (ICO) said on Tuesday, projecting a small surplus on the global supply balance for the 2019-20 season.
The ICO still sees global coffee consumption rising 0.3% in the 2019-20 season (October-September), despite the coronavirus pandemic, to 168.39 million bags. With production seen at 169.34 million bags, the balance was projected at a surplus of 952,000 bags.
Although small, the surplus is a reversal from the intergovernmental organization’s monthly projection in August, when it saw the balance at a deficit of 486,000 bags.
The report considers Brazil’s past year production, which was seen at 58 million bags. The country’s current crop, which will be accounted for in the global 2020-21 season, is seen at a record near 68 million bags.
The 0.3% consumption growth expected in the current season lags the 2.2% average growth seen in the last two decades.
“A surge in demand at the start of the global pandemic and increased at-home consumption helped to limit the fall in demand, but the latter half of the coffee year faces ongoing pressure from a global economic downturn and limited recovery in out-of-home consumption,” the ICO report said.
Coffee prices rose to the highest levels in more than eight months on Tuesday, as funds increase their long positions in several agricultural commodities.KCc2LRCc
(Reporting by Marcelo Teixeira, Editing by Franklin Paul and Leslie Adler)
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