World Coffee Supply Shrinking
Coffee entered a bull market in the week of March 14, and prices may continue to climb due to worldwide crop losses. El Niño has impacted crops in South America and Southeast Asia, leaving the world supply of coffee fragile, according to Coex managing director Ernesto Alvarez.
Meanwhile, worldwide demand may exceed output by up to 4 million bags after a 4.8 million-bag deficit during this crop year. Brazil’s inventory is reported to be the lowest in 15 years, with coffee trees experiencing stress for the last three years, reportsMilwaukee Journal Sentinel. Full Story