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Coffee Prices Poised to Climb With Bean Shortfall Nearing Third Year

  • Volcafe says Brazil’s arabica crop won’t reach potential
  • Indonesia is expected to see worst robusta crop in decade

The world will face coffee shortages for an “unprecedented” third year in a row due to lower-than-expected harvest from top grower Brazil, according to coffee trader Volcafe.

Global supply will trail demand by 3.8 million bags in the next season, with robusta beans hitting a record shortfall amid surging demand for the variety used in instant coffee and as a blend in espressos, the ED&F Man division said in a January report. The shortfall comes after demand in the current season is seen as outstripping supply by 4.5 million bags, according to the firm.