Coffee production worldwide is expected to reach record highs next season, according to market analyst CoffeeNetwork, which estimates that farmers will harvest 146 bags in 2012-2013, an 8.1 percent increase over this season’s production.
The production should mark a dramatic change from last year, when rain and other environmental factors in two of the world’s largest producers, Brazil and Colombia, caused decreased output amid a surge in worldwide demand. According to a Bloomberg report, coffee as a commodity reached a 14-year high of $3.089 per pound last May.
“The tight supply situation in 2011-12 was one of the factors behind the rise in prices to multi-year highs,” Andrea Thompson, head of research and analysis at CoffeeNetwork told Bloomberg. “The market is now well off those highs and there has been a growing feeling as 2012 progresses that there is currently more downside potential than upside for the market.”