27 May Market Report – September 2024
- COFFEE MARKET OVERVIEW – Sept 9th:
Global green coffee exports jump 10.6% in 2023/24, says ICO – Reuters .
Global exports of green coffee increased 10.6% in the current 2023/24 coffee season (Oct-Sept) according to data until the end of July to 103.08 million bags, the International Coffee Organization said in a monthly report published on Thursday. Importers continue to buy much more than they did in the last season, trying to replenish stocks as well as anticipate loadings, fearing the new European Union anti-deforestation regulation that enters into force next year may affect trade, the ICO has said. Brazil and Colombia were responsible for most of the increase in exports, sharply boosting their shipments of arabica coffee, the type preferred by high-end cafes such as Starbucks.
Regions
Brazil:
Local Market: Producers sell into rallies, local prices broke the BRL 1500 level for various qualities of arabicas, and close to that for conillon. The lofty arabica prices, combined with the cash shortage at exporter level made for a temporary drop in differentials as market participants were absent on the buying side.
Weather: The dry weather, combined with a lack of rainfall and drought conditions continues across most arabica and conilon regions such as Rondonia where irrigation is limited and the blossom at risk.
Export Market: Good external demand noted as roasters return from the holiday period and look to extend cover into the end of the year as well as nearby.
Exchange rate: 5.62
Colombia:
As the main crop is nearing, we start to see some initial pickings in the regions of Santander and Sierra Nevada. We expect the regions of Huila and Antioquia to kick off their harvest picking soon as well. Dry weather in Cundinamarca, Huila and Tolima while some showers have been seen in the northern part of the country and the Eje Cafetero.
Honduras:
On August 26th, San Pedro Sula hosted the inaugural event of the Honduran Coffee Expo. Trading activity remains low as we are in the off season still. Weather conditions remain stable with 34 degrees and scattered thunderstorms.
Ethiopia:
The rising internal market price for all qualities has been accompanied by a sharp drop in the volume of coffee being delivered from upcountry suppliers. Exporters with shorts to cover of commercial naturals are facing significant delays and shortage of supply even when they are willing to pay the record prices being asked. Most exporters point to Akrabis (local suppliers), accusing them of holding back the coffee.
PNG:
The slowing in coffee flow continues as we approach the end of the season. Local prices are elevated for the little volume still available. Focus is purely on getting parcels shipped to the EU by end of September ahead of the EUDR act.
Vietnam:
Local prices traded around 122,000 VND/kg, ignoring the market move higher as nearby demand remains thin. G2 is trading between +180 and +300 FOB for nearby shipments while new crop shipments show a wider range of prices. Rain continues to fall as we enter the traditionally wettest months of the season, which is beneficial for the upcoming crop. Currency: 24,870 VND/USD.