Brazil Coffee Area Getting Drier And Drier Says ICO

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Brazil’s coffee areas are just becoming drier and drier, International Coffee Organization executive Mauricio Galindo said as the group unveiled a below-market forecast for world output, and futures soared a further 4%.While Espirito Santo, the major area for growing robusta beans, had extensive irrigation to protect trees from the lack of moisture, this was not so in Minas Gerais, the main state for growing the arabica beans of which Brazil is the top producer.Mr Galindo’s comments came as the ICO, in its first forecast for 2013-14, estimated a rise of only 659,000 bags to 145.78m bags in world output, a figure far smaller than that seen by many other commentators.Indeed, it implies only a small production surplus, assuming that consumption continues its long-term growth of 2.4% a year on ICO measures.A fall in Brazilian coffee output in 2014 would represent the first time since 1977 that the country has recorded two successive years of production declines, the ICO said.