ICO sees global coffee market back in deficit this season

LONDON (Reuters) - The International Coffee Organization (ICO) revised its forecast on Tuesday for the global coffee market balance in the current 2019/20 season, predicting a deficit of 486,000 60kg bags in its July report.

The intergovernmental organisation previously forecast a surplus of 1.85 million bags for 2019/20 in its June monthly report, on account of the expected negative impact of coronavirus lockdowns on consumption.

It has since, however, adjusted its 2019/20 coffee consumption figure up to 168,492 60kg bags from 166,058 bags, noting this still represents annual growth of just 0.3%, below the 2.2% average growth rate of the last two decades.

"Strong growth at the start of the season is expected to be offset by a global economic slowdown," said the ICO.

The group, however, kept its global coffee production forecast for 2019/20 at 168,006 60kg bags, little changed from a previously forecast 167,906 bags in June, and pushing the global market balance back into deficit.

(Reporting by Maytaal Angel; editing by Emelia Sithole-Matarise)