Chilly winter boosts coffee demand
Monday, 13 December 2010
LONDON, dec 12 (Commodity Online): As cold wave grip tightened over most of Northern Hemisphere especially Europe, coffee demand is soaring.
According to International Coffee Organisation, extreme cold conditions have threatened to unsettle a precarious balance in the world coffee market by spurring demand for the bean in its first forecast for world coffee demand this year.
The ICO said consumption should exceed 130 million bags, a rise of at least 1 million bags year on year, although it was unclear as yet whether 2008's record of 130.6 million tonnes would be reached.
However, chances had been improved by the cold start to winter in Europe and the US, and forecasts of further freezes to come, expectations which have also boosted oil prices.
"The expectation of an exceptionally hard winter in many consuming countries this year could help to increase an already buoyant world consumption level," the organisation said.
Prospects were particularly strong for Eastern Europe, where cold weather has claimed more than 50 lives this month in Poland alone, and where rising prosperity and "lifestyle choices" were already boosting consumption.
According to International Coffee Organisation, extreme cold conditions have threatened to unsettle a precarious balance in the world coffee market by spurring demand for the bean in its first forecast for world coffee demand this year.
The ICO said consumption should exceed 130 million bags, a rise of at least 1 million bags year on year, although it was unclear as yet whether 2008's record of 130.6 million tonnes would be reached.
However, chances had been improved by the cold start to winter in Europe and the US, and forecasts of further freezes to come, expectations which have also boosted oil prices.
"The expectation of an exceptionally hard winter in many consuming countries this year could help to increase an already buoyant world consumption level," the organisation said.
Prospects were particularly strong for Eastern Europe, where cold weather has claimed more than 50 lives this month in Poland alone, and where rising prosperity and "lifestyle choices" were already boosting consumption.