Benchmark ICE arabica futures  KCc1 were seen rising further in the latest poll, after climbing 50 percent in calendar 2014. They were projected to increase to a median of $1.80 cents a lb at the end of the first quarter on March 31 and to $1.98 at the end of 2015.

The year-end level represented a rise of around 18 percent from current prices, with the benchmark contract trading around $1.68 on Wednesday.

Adverse weather in top grower Brazil and expectations of a stronger Brazilian real currency could propel ICE arabica futures higher, respondents said.

“My expectation is that weather will remain volatile and below ideal, the Brazilian real will strengthen against the U.S. dollar, and the 2015/16 Brazilian crop will be downgraded in size,” said Shawn Hackett of Hackett Financial Advisors Inc.

Another respondent, who preferred not to be identified, said bullish factors included expectations of lower Brazilian output and the potential for bad weather in major producing countries such as Vietnam, the world’s second-largest grower.

A third respondent said coffee prices had performed well relative to other commodities in 2014, potentially helping to boost prices in 2015.

“This may encourage more funds to put their money into coffee instead of other commodities, and this makes coffee prices volatile and risky,” he said.

The median forecast pegged Brazil’s 2015/16 crop at 46.5 million bags. Forecasts ranged from 40 million to 48.5 million bags.

The caffeine-rich robusta variety, mainly used in instant coffee and blends, is also expected to register a price increase.

The median poll response forecast benchmark ICE robusta  LRCc2 to rise to $2,115 a tonne by the end of calendar 2015, up about 7 percent from around $1,980 on Wednesday.

Vietnam, the top robusta grower, was expected to produce a median of 27.2 million bags in 2014/15, slightly below a consensus of 27.5 million in the last Reuters poll in July.

Vietnam's robusta harvest begins around October/November. Brazil's coffee harvest starts in May.

Source: Reuters