Much Higher Prices is expected for Robusta Coffee

Two straight years of deficit in global robusta coffee output will create a cumulative supply deficit of 8 million bags that should be reflected in much higher prices, Sunny Verghese,chief executive officer of Singapore-listed company Olam International Ltd’s said on Wednesday.

“We expect two consecutive years of massive shortfalls in the robusta market,That should reflect in much-higher fair value for coffee” said Olam co-founder and Chief Executive Sunny Verghese.

In arabica, he expects short term rally in coffee prices but once the very large estimated 2018/19 arabica crop in Brazil comes to pass, which will be a record high crop, we expect that will have a bearish impact on prices.

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