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REGION: COFFEE PRICES UP AS U.S. RETURNS TO OIC, BUT CRISIS CONTINUES FOR PRODUCERS.

Article Excerpt
Coffee has begun a price turnaround that may signal some relief to long-suffering producer nations. Production declines brought about by a world glut that at one point drove prices down to below US$.50 per pound (standard measure for this commodity) have resulted in near equilibrium of supply and demand. Anticipated harvest for the 2004-2005 coffee year is estimated at 112 million to 116 million bags, with consumption estimated at 113 million to 114 million bags.

In September, Nestor Osorio, executive secretary of the Organizacion Internacional del Cafe (OIC), predicted price improvements during the next six to 18 months. Prices then were at US$.82, substantially better than June 2003, when they struggled at the US$.65 level.

Aside from widespread...