“People buying are expecting a certain level of coffee quality – they are not going to get it,” Ganes-Chase added.
Along with Brazil, the world’s largest coffee grower, low production in Indonesia will offset any large harvests in Vietnam. Additionally, Colombia, the second-largest grower of arabica beans, saw a decline in production last month, the first year-over-year dip since 2012.
According to the International Coffee Organization, the market could face a deficit where demand outstrips supply in the 2014-2015 crop year.
iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN
For more information on the coffee market, visit our coffee category.