The International Coffee Organization (ICO) has raised its estimate for 2016/17 world Coffee production to a record high of 157.4 million 60kg bags, driven largely by an upward revision to arabica output in Mexico and Central America.
The ICO had previously put the crop at 153.9 million bags.
Coffee production in Mexico and Central America was put at 20.3 million bags, compared with a previous estimate of 17.7 million and up 16.3 percent on the previous season.
Global arabica coffee production in 2016/17 was revised to 101.6 million bags, up from the previous forecast of 97.3 million and 14.7 percent higher than 2015/16.
Robusta coffee production was trimmed slightly to 55.9 million bags, down from a previous estimate of 56.6 million and 12.2 percent below the prior season.
The rise in coffee production was seen leading to a surplus, with global consumption forecast at 155.1 million bags, down a marginal 0.3 percent from a year earlier.
"Given the rise in global coffee output against stable consumption, coffee year 2016/17 is now seen in surplus after two consecutive years of deficit, with production exceeding consumption by 2.38 million bags," the ICO said.
"The market is well supplied at the start of coffee year 2017/18 by the replenishment of stocks over this past year."