Brazil's coffee crop developing well

Brazil's new coffee crop is developing well due to favourable weather and could exceed the official forecast by 9 percent, but it may not stop coffee prices from rising in 2007, the head of Italian roaster Illycaffe said on Thursday.
In a preliminary estimate in December, the government said the world's biggest coffee grower will produce between 31.1 million and 32.3 million 60-kg bags in 2007/08 (July/June).
"The Illycaffe team reported good rains, good flowering and good conditions for exceeding the official forecast," Andrea Illy, chairman and chief executive of the Trieste-based roaster, told Reuters in a telephone interview from Sao Paulo.
Illycaffe, one of Italy's top three roasters, sells its arabica espresso coffee to more than 140 countries. About half its supplies come from Brazil.
The International Coffee Organisation estimated world 2007/08 coffee output at 109 million to 112 million bags, less than estimated demand of 118 million to 120 million bags.