According to the U.S. Department of Agriculture (USDA), global coffee production is set to exceed demand for the fourth straight season driving inventories to a five-year high. Crop conditions in Brazil, the world’s biggest producer, are improving as rains increase, sparking concerns of a worsening global glut and causing futures to fall in the longest decline since 1993. According to Conab, Brazil’s governmental forecasting agency, Brazil’s coffee crop will reach 49.2 million bags – beating the previous estimate of 47.5 million bags. Total global supply for 2013/14 will exceed demand by 6.04 million bags following a surplus of 11.06 million bags the previous year. Inventories will reach 36.33 million bags; the highest since 2008/09.
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