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Saturday 02 November 2024
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  • La Cimbali

Report from the World Bank sees balanced Arabica market, Robusta deficit

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MILAN – Coffee, tea and cocoa prices could fall by more than six per cent this year due to greater supply, according to the latest Commodity Markets Outlook from the World Bank. Agricultural raw materials production is expected to rise by four per cent.

The report is also forecasting higher prices for industrial commodities, principally energy and metals, in 2017 and the following year.

Rising oil prices, supported by production cutbacks by Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC states, will allow markets to gradually rebalance.

These oil price forecasts are subject to downside risks should the rebound in the U.S. shale oil industry be greater than expected.

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