COFFEE GLOBAL MARKET WEEKLY UPDATES
In the midst of ongoing uncertainties within the coffee industry, the futures markets continued to experience volatile shifts.
* World coffee production for 2023/24 is forecasted to reach 171.4 million bags, with increased output expected from Brazil, Colombia, and Ethiopia. Global exports are projected to rise to 119.92 million bags, primarily driven by strong shipments from Brazil. Global coffee consumption is forecasted to reach 169.5 million bags.
* Robusta market is surging on tight supplies from Vietnam and strong industry demand. Concerns about dry weather that could reduce the next crop also boost prices.
* Brazil’s new Robusta crop from Espiritu Santo and Rondônia is now projected to be smaller.
* In Rwanda, all washing stations are now open. Cherry harvesting is soon peaking, with a few areas in the Central and Eastern regions still a few weeks behind. The crop outlook remains positive.
* Shipments out of Brazil are on the edge of surpassing the milestone of 4 million bags in April, marking an unprecedented achievement for this period of the year.The weather is dry and favourable for a smooth harvesting period. In the Zona da Mata region, approximately 15-20% of the new crop should already be picked.
* This year’s drought in Vietnam could continue the low-supply cycle, hurting next year’s production. Last month, Vietnam’s coffee association said exports could decline as much as 20% in the 12 months ending in September, compared with the same period last year.
* Robusta’s price has also been pushed up by hoarding. Some Vietnamese farmers aren’t selling their coffee beans, holding onto as much as 13% of this year’s harvest in hopes of selling the beans for more later.
* Uganda’s coffee exports experienced a decline in March 2024 due to harvest challenges and logistical issues.
* The data revealed 329,686 60-kilo bags of coffee were exported, valued at USD 64.74 million. This marked a substantial decrease from the 434,583 bags exported in February 2024.
* The March 2024 exports comprised 244,975 bags of Robusta, valued at USD 46.01 million, and 84,711 bags of Arabica, valued at USD 18.72 million.
* Despite the monthly decline, coffee exports for the twelve months ending March 2024 showed positive growth, totaling 5.90 million bags worth USD993.63 million. This represented a 2.42 percent increase in quantity and a significant 16.91 percent increase in value compared to the previous year.
* Costa Rica exports first batch of deforestation-free coffee
* Vietnam Jan-Apr coffee exports up 5.4% y/y to 756,000 T. Coffee export revenue in the same period rose 58% to $2.57 billion
* Figures from the Vietnam Coffee-Cocoa Association (Vicofa) show that in March alone, Vietnam shipped more than 185,000 tonnes of coffee abroad, generating $680 million in export value. Despite an 11.9 per cent dip in export volume, value soared 41 per cent on-year.
* Vietnam’s coffee output would fall to 1.6-1.7 million tonnes, lower than the 1.78 million tonnes in the 2022-2023 season.
* Iran’s coffee imports increased by 75 percent
* Iran Customs Public Relations announced that the weight of imported coffee during this period was 49,000 tons, which has increased by 48.55% compared to the same period last year.
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