Coffee demand up but not yet percolating at pre-pandemic levels -report

div classBodysc17zpet90 cdBBJodivpBy Marcelo Teixeirap

pNEW YORK Reuters – Demand for coffee in nonproducing countries showed a healthy recovery in the first quarter, although there are signs of possible slowdowns in demand in Russia and China for the coming quarters, analysts from Rabobank said in a report on Friday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIt said “coffee disappearance,” a term indicating the amount of coffee nonproducing countries are actually consuming and not packing for reexport, rose 6.9 in the first quarter compared to the same period a year earlier. The European Union plus United Kingdom area saw a larger increase, at 9, while the United States jumped 4.6 and Japan, 5.1. p

pRabobank said the numbers are still not great compared to prepandemic levels. The result in the first quarter was only 0.6 higher than two years ago Q1 2020. p

pThe analysts said Russias war in Ukraine and Chinese Covid lockdowns could dent coffee demand in those countries. They also said high retail prices could hurt demand in Brazil, a top producing country which is also the second largest global coffee consumer after the United States.p

pRabobank projects a 25 fall in Russian coffee demand, and a 50 fall in Ukraines coffee use. p

pThe bank sees the global coffee supply balance shifting from a deficit of 5.1 million 60kg bags in 202122 OctSept to a surplus of 1.7 million bags in 202223.p

pIt kept its estimate for Brazilian 2022 production at 64.5 million bags, in the top end of market estimates.p

pBrazils food supply agency Conab cut its crop view to only 53.4 million bags on Thursday. p

pRabobank, however, cut its view for the Colombian crop to 11.8 million bags in 202122, but expects a recovery to 13.4 million bags in 202223. p

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pp Reporting by Marcelo Teixeira Editing by David Gregoriop

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