NEW YORK, Oct 13 (Reuters) - Coffee stocks in importing countries have hit an eight-year high the International Coffee Organization (ICO) said in a monthly report on Friday, adding the inventories are providing a buffer against short-term supply concerns.
Coffee stocks totaled 25.4 million 60-kg bags in June, their highest since June 2009, the ICO said.
Major importers, such as the United States and European Union, have large coffee inventories despite a third straight global deficit year. “The market has remained well supplied by stocks accumulated during surplus years in 2012-13 and 2013-14,” ICO said. The ICO has forecast world coffee production at 153.9 million bags in the 2016-17 crop year that ended in September, up 1.5 percent from 2015-16, and pegged consumption at 155.1 million bags. This equated to a global deficit of 1.2 million bags in 2016-17, it said.
Meanwhile, exports from Brazil - the world’s biggest coffee grower - slid 7.3 percent to 29.3 million bags in the first 11 months of 2016-17, ICO data showed.
Brazil’s coffee stocks will increase by a slight 1.03 million bags with domestic consumption stable at 20.5 million bags. But dry weather in August could reduce 2017-18 production, the ICO said, which is currently forecast at 55 million bags. (Reporting by Marcy Nicholson, editing by G Crosse)