Lowered production estimates from Brazil’s National Coffee Council, and forecasts for continued dry weather in the country’s coffee belt have caused coffee prices to climb nearly 11% since April 3rd. Brazil produces more than half of the world’s Arabica beans which are typically used in gourmet blends. A decline in production could shrink global supplies and concerns over output have caused coffee prices to climb 75% since the beginning of 2014. The National Coffee Council has lowered its estimate for the 2014 harvest from 44 million 60-kilogram bags to between 40.1 and 43.3 million 60-kilogram bags because of drought conditions in growing regions with a particular lack of rain in January and February. The council went on to cut its estimate for the 2015 crop to between 38.7 million bags and 43.6 million bags compared to an earlier estimate of between 43 million and 44 million bags.
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