Helixtap Analysis: Shrinking Plantation Area Could Lead To Market Overconsumption As Early As 2027

Over the past 20 years, yearly average prices have had a strong linear correlation with newly planted areas at 0.83. New planting activities depend heavily and are greatly influenced by the price trends at each point of time in the past. As prices after 2011 trended downward from the highs, new planting in major producing countries followed suit. However, the price relationship was weak with replanting or total area under plantation, registering 0.13 and 0.14 respectively.