Why Olam sees global coffee prices bottoming out

Farmers likely to cut production.

According to Reuters report, the global coffee market could find a floor around current levels as multi-year low prices prompt farmers to cut production, commodities trader and coffee supplier Olam International Ltd (OLAM.SI) said on Monday.

"It does not make sense for farmers to fertilize at the same level or (carry out) weeding at the same level, so they will reduce the inputs," Olam Chief Executive Officer Sunny Verghese said in an interview at the Reuters Global Commodities Summit.

"There might be a little bit more downside to coffee prices, but we see that we are reaching the bottom."

Read full report here.

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