Coffee stocks in Europe rise as imports rise

Published Nov 5, 2024

Tridge summary

A recent report by the European Coffee Federation (ECF) shows an increase in coffee stocks in the European Union (EU) to 8.85 million bags in August, following historically low levels in early 2024. This increase is due to higher imports of washed robusta and arabica beans, mainly from Brazil, Central America, and East Africa. Despite this, EU stocks are still below average and 2022/2023 levels. High demand for coffee in the EU is contributing to the slow recovery of stocks. The EU's Zero Deforestation Regulation (EUDR) has led to a surge in demand for Brazilian coffee, especially robusta, which is expected to continue. However, a potential delay in the EUDR could result in a decrease in imports. The market is also influenced by the possibility of a more robust supply, due to rainfall in Brazil and a promising robusta crop in Vietnam.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A recent report by the European Coffee Federation (ECF) revealed an increase in coffee stocks in the European Union (EU), which reached 8.85 million bags in August, after historically low levels in early 2024. This growth was driven by the increase in imports of washed robusta and arabica beans, mainly from exporting countries such as Brazil, Central America and East Africa, as detailed by Laleska Moda, coffee analyst at Hedgepoint Global Markets. Despite the increase in imports, European stocks are still below historical averages and levels recorded in 2022/2023. Laleska explains that demand for coffee in the EU remains high, which limits the recovery of stocks and keeps consumption high. With the implementation of the EU’s Zero Deforestation Regulation (EUDR), there has been a significant increase in demand for Brazilian coffee, especially in the second and third quarters of 2024. This trend is expected to continue until the end of the year, driven by demand for robusta, despite ...

Source: Portal Do Agronegocio