OIC predicts that pressure drop in prices will continue

Coffee prices may not recover quickly. The International Coffee Organization (ICO) made the prediction on Thursday. In the annual report published in the British capital, the entity mentions that the selling pressure seen in 2013 should continue in the coming months and only in the long term the trend can change.
"In the short term, it is likely that the downward pressure continues in the coffee market," says the document released recently, citing that production should not retreat significantly in the year. "Looking at 2013/2014, Brazil provides a crop of 49.15 million bags, only 3.3% less than the 2012/2013 harvest and other major exporting countries have mixed prospects," explains the report of the entity.
Despite the pessimistic prognosis for the short term, the entity retains an optimistic future for the speech. "Stocks certificates are close to historic lows and consumption growth remains around 2.4% per year, however, mean that the demand for coffee continues to be buoyant and should provide potential for long-term growth," said ICO.
Source: Globo Rural