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Coffee Supply in Brazil Deemed “Normal” for First Time Since November 2016
CoffeeNetwork (New York) – The Brazilian Coffee Industry Association (ABIC) continues to calculate their Industrial Coffee Supply Index (IOCI), which assessing the supply and demand situation in the country. The index is a reading from 1 to 9, with the scale going from lowest to highest in terms of coffee availability.
The latest reading reached 7.22 points in the period of March 26 to March 29th. Anything above 7 is considered a “normal” supply. This is the first time the IOCI reached above 7 since November 2016.
Estimates for the 2018-2019 crop still range from 53 to 64 million bags, with CONAB expecting production around 58 million bags. The rise in production is attributed to both improved weather conditions and the “on-year” of Brazil’s biennial crop. The Conilon harvest has begun in some areas and early supplies are already becoming available.
In the beginning of 2017, the IOCI was as low as 2 points as the Conilon crop saw significant damage throughout Espirito Santo.