Brazilian coffee industry association Abic said that the country has enough coffee stocks to meet the local demand and supply exports even though the extent of the damage to crops due to a drought remains unclear.
The association had initially estimated a crop of 47 million 60kg bags, while market participants say that the damage to supplies will be made up by a global surplus of almost five million bags, reported Reuters.
Given the current scenario, the price of arabica coffee has almost doubled in two months, touching two-year high on Thursday.
The South American nation grows roughly 40% of the world's arabica, providing most major commercial blends used in household names, including Folgers.
Last week, Brazil's national coffee council estimated production to be between 40.1 million and 43.3 million bags, which would be the country's smallest crop in five years.
In January, the government had forecasted 46.5 to 50.2 million coffee bags, in comparison with 49.2 million bags a year earlier.
A new estimate from crop supply agency Conab is due for release in May.
Data from Minas Gerais, a state that produces half of Brazil's coffee, showed that the drought could have damaged as much as 45% of the crop.
According to Abic, the country exported 31 million bags of coffee, while 20 million went for domestic consumption last year.
