DJ USDA Expects Record Brazil, World Coffee Output In 2010-11

NEW YORK (Dow Jones)–Total coffee output from Brazil, the world\’s No. 1 producer, is forecast to surge 23% to a record 55.3 million bags in the 2010-11 marketing year, the U.S. Department of Agriculture said Friday. 

In addition, Brazil is expected to boost its harvest of arabica coffee beans, which are valued more than the robusta variety due to their taste, by 27% in the year to 41.8 million bags, each weighing 60 kilograms, according to the USDA\’s biannual market and trade report on the commodity. 

The USDA estimated Colombia\’s 2010-11 coffee crop at 9 million bags, up 9.8% from the year before. The USDA revised lower its estimate of the country\’s 2009-10 coffee output to 8.2 million bags from the 9 million projected in its forecast published in December. 

Prices for high-quality arabica coffee beans traded on ICE Futures U.S. have risen about 20% in the last two weeks. The rally is underpinned by the scarcity of premium arabica beans following back-to-back poor harvests in Colombia and Central America, the primary sources for arabica. The mammoth Brazilian crop is expected to help fill the gap left in premium arabica production. 

Global coffee production is expected to hit a record 139.7 million bags in 2010-11, an 11% increase from 2009-2010. Arabica production is expected at 86 million bags with robusta output seen at 54 million. 

Earlier this month, the International Coffee Organization pegged 2010-11 total world production at 133 million-135 million bags, slightly lower than the USDA\’s number.  
 
By Holly Henschen, Dow Jones Newswires