Coffee, tea and cocoa prices could fall by more than six per cent this year due to greater supply, a report says. The World Bank report, however, also projects that agricultural raw materials production is expected to rise by four per cent.
According to the World Bank’s Commodity Markets Outlook, returns from the three beverages are forecast to decline this year “due to greater-than-expected supply.” Coffee prices have been rising over the past year but started to fall late last month.
Traders are now predicting that coffee will end up in surplus this year and not in deficit as had been expected previously.
The report provides detailed market analysis for major commodity groups, including energy, metals, agriculture, precious metals, and fertilisers.