W12: Weekly Coffee & Tea Update
Coffee
Global
World Coffee Price Today March 25, 2023
Today, on March 25, the price of coffee rose dramatically at both of the main exchanges. When the survey was conducted, the price of Robusta coffee for delivery in May 2023 on the London market had risen significantly by USD 65/MT (equivalent to 3.06%), to USD 2,189/MT. Additionally, the cost of coffee delivered on this level in July 2023 rose to USD 60/MT (or 2.85%), or USD 2,165/MT. Today, the price of coffee across the globe rose by almost 3% from yesterday. Experts believe that the declining merchandise in the two markets is the cause.
Following the conclusion of the US Federal Reserve's (Fed) monetary policy conference last night, the decision to increase the USD running interest rate by 0.25% caused a reversal in the price of coffee futures. Even so, the amount of trading on both coffee futures markets is quite low, indicating that the majority of investors are still waiting outside for fresh positive news.
World Coffee Market Today March 22 Where Two World Exchanges Continue the Price Increase
Robusta for May contract in May 2023 on the London floor saw a global market rise of USD 43, or 2.06%, to USD 2,130/MT. The cost of arabica for delivery for the same period increased by 1.8 cents, or 1.01%, to 180.3 US cents/lb on the New York Stock Exchange.
Vietnam has a total area of about 710,000 ha for coffee cultivation, but only about 650,000 ha are harvested, and the country has a very low rate of thorough processing. According to the Brazilian Coffee Exporters Association (Cecafé), the nation shipped 2.39M bags of coffee (60 kg type) in February 2023, a steep decline of 33.3% from the same time in the previous year, with a drop in revenue of 38.5%, down to USD 506M. Brazil shipped 5.22M bags of coffee in the first two months of 2023, a decrease of 25.4% from the same time in 2022.
Brazil
Coffee Starts Operating Only With Technical Adjustments in the US
The New York Stock Exchange's selling session on Monday, March 20, saw the Arabica coffee futures market revert to a losing position. Coffee only functions by making technological changes while keeping an eye on macroeconomic problems. The entire industry keeps a watch on agricultural conditions in Brazil as well as demand signs in significant customer centres like the United States. May/23 saw a decline of 65 points and traded at 175.95 cents/lbp; July/23 saw a decline of 45 points and traded at 175.20 cents/lbp; September/23 saw a decline of 20 points and traded at 171.70 cents/lbp; and December/23 saw a decline of 25 points and was priced at 171.65 cents/lbp.
Vietnam
Agricultural Product Prices in Vietnam on March 25, 2023: Coffee Continued to Increase Strongly
Coffee prices are still rising by USD 0.043/kg. Particularly, the price of coffee is 48,000 VND/kg (USD 2.04/kg) in the Di Linh area (Lam Dong). Coffee costs 47,900 VND/kg (USD 2.04/kg) in Bao Loc (Lam Dong) and Lam Ha (Lam Dong). Today's pricing for coffee in Dak Lak's Cu M'gar area is 48,400 VND/kg (USD 2.06/kg). The cost of coffee today in the Ea H'leo area of Buon Ho (Dak Lak) is 48,300 (USD 2.06/kg).
Coffee Exports to the Dutch Market Increased Sharply
Vietnam's coffee exports to the Netherlands market in February 2023 totaled 4,100MT, valued at USD 10.11M, an increase of 24.1% in volume and 18.1% in value over the previous month. It was also an increase of 110.3% in volume and 136.6% in value over the same month in the previous year. In general, coffee exports to the Netherlands market in the first two months of 2023 totaled 7,420MT, valued at USD 18.77M, up 93.1% in volume and 105.7% in value over the same period in 2022.
Coffee Prices in Vietnam Today, March 24, 2023: Slightly Increased Again
Compared to yesterday, the price of coffee on the domestic market increased little today, by 300 VND/kg (USD 0.013/kg). In particular, the cost of Lam Dong coffee is presently USD 2.00/kg in the three districts of Di Linh, Bao Loc, and Lam Ha. Today's coffee price in Dak Lak's Cu M'gar area stayed at USD 2.02/kg. The cost of coffee in the districts of Ea H'leo and Buon Ho is USD 2.01/kg today.
Agricultural Product Prices on March 22, 2023: Coffee Continued to Increase Sharply by USD 0.026/kg
Coffee may be obtained for 47,000 VND (USD 2.00/kg) in the Di Linh district of Lam Dong. The price of a kilogramme of coffee in Bao Loc and Lam Ha is 46,900 VND/kg (USD 2.00/kg). The current price of coffee in Dak Lak's Cu M'gar district is 47,400 VND/kg (USD 2.02/kg). Coffee is currently being purchased in the Ea H'leo area of Buon Ho (Dak Lak) for 47,300 VND/kg (USD 2.01/kg). Currently, the price of coffee in Pleiku and La Grai, Gia Lai, is 47,300 VND (USD 2.01/kg). Moreover, it is bought in Chu Prong district (Gia Lai) for a lesser price of 47,200 VND/kg (USD 2.01/kg).
Agricultural Product Prices on March 21, 2023 in Vietnam: Coffee Increased by USD 0.017/kg
Specifically, in Di Linh district (Lam Dong) the price of coffee is purchased at 46,400 VND/kg. In Bao Loc (Lam Dong), Lam Ha (Lam Dong) coffee prices are at 46,300 VND/kg. In Cu M'gar district (Dak Lak), the price of coffee today is at 46,800 VND/kg. In Ea H'leo district (Dak Lak), Buon Ho (Dak Lak), the price of coffee today was purchased at 46,700 VND/kg. In Pleiku (Gia Lai), La Grai (Gia Lai), the price of coffee today is at 46,700 VND/kg. And in Chu Prong district (Gia Lai) is purchased at a lower price of 46,600 VND/kg.
In the Domestic Market, the Price of Coffee Today, March 20 Ranges From USD 1.96-1.98/kg
The price of coffee on the domestic market today, March 20, is between 46,000 and 46,400 VND (USD 1.98/kg). Coffee costs 46,000 VND/kg (USD 1.96/kg) in Lam Dong province; 46,200 VND/kg (USD 1.97/kg) for green coffee in Dak Nong province; and 46,300 VND/kg (USD 1.97/kg) for coffee in Gia Lai and Kon Tum provinces. In particular, the cost of coffee in the province of Dak Lak reached 46,400 VND (USD 1.98/kg).
United States
Coffee Goes Through Adjustments and Operates in the Positive This Friday, March 24 in New York
This Friday, March 24, during the trading period on the New York Stock Exchange, the Arabica coffee futures market resumed operation with gain for the primary contracts. May/23 was up by 425 points to 178.55 cents/lbp; July/23 was up by 425 points to 177.70 cents/lbp, September/23, increased by 420 points to 175.90 cents/lbp; and December/23, the price increased by 395 points to 173.75 cents/lbp.
With Favorable Weather Conditions in Brazil, Coffee Remains Under Pressure in the US
This Friday, March 24, the major contracts on the New York Stock Exchange were devalued as the Arabica coffee futures market opened for dealing. May/23, was down by 70 points to 173.75 cents/lbp; July/23 decreased by 65 points to 172.80 cents/lbp; September/23 was down by 60 points to 171.10 cents/lbp and December/23, decreased by 55 points worth 169.25 cents/lbp. Closer and closer to the harvest, the harvest in Brazil has pressured coffee prices on the international market. After several weeks of heavy rains, the drier weather in the country's main production areas favors cultural practices.
Robusta Coffee Goes up in United States
Robusta coffee prices for May reached more than a month's lows on Monday, closing up USD 12, or 0.6%, at USD 2,124/MT. Due to limited stocks, traders report that the primary Robusta producer, Vietnam, has seen sluggish coffee trade recently. After tumbling to its lowest price since February 9 at USD 1.739/lb, May arabica lost 3.7 cents, or 2.1%, to trade at USD 1.743/lb.
The Coffee Market Maintains Focus on the Development of Brazil and Extends Lows in New York, the USA
This Thursday, March 23, the Arabica coffee futures market began trading, extending the lows for the major New York Stock Exchange contracts. Since yesterday, the market has decreased coffee prices as it tracks the growth of the Brazilian harvest. The sector says that the effective recovery should only occur next year in this area, notwithstanding the more favourable agricultural conditions. The drier period, facilitating cultural dealings and risk aversion in the financial sector also help to put pressure on the market.
Coffee Market Continues to Operate With Lows in the US and UK Stock Exchanges on March 23
Arabica coffee futures contracts traded with devaluations on the New York Stock Exchange, this Thursday afternoon March 23, when they dropped from 290 to 390 points. In this trading session, negotiations also take place with lows on the London Stock Exchange. The price for the May/23 expiration date dropped by 390 points to 174.10 cents/lbp. The price of the July/23 contract, which has a loss of 360 points, is 173.25 cents/lbp. When it came to September/23, it operated with a 340-point devaluation and was priced at 171.50 cents/lbp, whereas December/23 operated with a 290-point devaluation and was priced at 169.90 cents/lbp.
The May/23 contract, which was arranged for USD 2105/MT, saw a reduction of USD 6 in London. The July/23 agreement registered a decrease of USD 10/MT and was worth USD 2085/MT, and the September/23 registered a devaluation of USD 4/MT and was quoted at USD 2056/MT.
Coffee Market Works With Devaluation This Wednesday Afternoon in NY and London
Arabica coffee futures contracts traded with devaluations on the New York Stock Exchange (Ice Futures US) this Wednesday afternoon, March 22, falling between 250 and 265 points. In this trading session, negotiations also take place with lows on the London Stock Exchange. The May/23 expiration date had fallen by 250 points and was trading at 177.80 cents/lbp. The price of the July/23 contract, which has a loss of 265 points, is 176.60 cents/lbp. When it came to September/23, it operated with a 255-point devaluation and was priced at 174.75 cents/lbp, while December/23 operated with a 255-point decline and was priced at 172.65 cents/lbp.
Arabica Coffee Ends This Wednesday’s Session With Devaluation on the NY Stock Exchange
The New York Stock Exchange and the London Stock Exchange both devalued the price of coffee at the end of this Wednesday's session, March 22. Due to Brazil's good weather and the rise in approved stocks at the ICE, the market is currently at low levels. The May/23 contract ended with a loss of 230 points whereas the July/23 contract closed with a loss of 240 points and is priced at 175.85 cents/lbp. September/23 saw a 240-point devaluation and was quoted at 174.90 cents/lbp. December/23 also experienced a 240-point devaluation and was priced at 172.80 cents/lbp.
Coffee Advances in New York and London This Tuesday, March 21 With Fewer Economic Concerns
The New York Stock Exchange saw a rise of 1.01% or 180 points in the most actively traded arabica coffee maturity, which now costs 180.30 cents/lb. At USD 2130/MT in London, the first contract for robusta coffee increased by 2.06% on the day. On Tuesday, coffee prices reached one-week highs and finished slightly higher. Concerns about the economy were allayed, and coffee prices increased, as the US-European banking crisis subsided.
Despite Financial Concerns, Coffee Reverses and Tests New Highs This Monday
The Arabica coffee futures market on the New York Stock Exchange completed trading on Monday, March 20 with marginal gains after trading for most of the day with depreciation in the primary quotations. May/23 was up 190 points, traded at 178.50 cents/lbp, July/23 was up 205 points, quoted at 177.50 cents/lbp, September/23 was up 195 points, quoted at 175.70 cents/lbp and December/23 rose 180 points, quoted at 173.70 cents/lbp
Ethiopia
Ethiopia Registers Improvement in the Performance of Coffee Exports in the Last Eight Months
The Ethiopian Coffee and Tea Administration reported that during the past eight months, coffee exports to Ethiopia brought in USD 787M. Data show that Ethiopia performed better than in the same period in the previous fiscal year in terms of grain exports, despite the fact that the main market for Ethiopian coffee, the European Union, has been impacted by the conflict between Ukraine and Russia. Due to recent advances on the global stage, the nation expanded its market reach and began exporting coffee to the United Arab Emirates, China, and Australia. In comparison to the results of the last fiscal year, the revenue from coffee exports during the past eight months increased by 38.5%.
Ethiopian Commodity Exchange Launch Coffee Academy
Ethiopia's Commodity Exchange (ECX), a public-private institution developed 15 years ago with a modern marketing system, has now been set to provide training in the form of an academy for grading coffee, grain/cereals, and oilseed. The ECX announced that the academy is qualified to start training according to the legal responsibility of the institution to provide training related to its work. The trainees will follow practical education given by the institute's colleagues who have extensive knowledge and experience.
Kenya
Coffee Farmers in Mount Kenya Seek Direct Access to Buyers
The Kenya Kwanza government is being urged by coffee growers in the Mt. Kenya region to eliminate the Nairobi coffee exchange and permit farmers to do business directly with consumers in order to expand the market for their product. Farmers will continue to be abused and coffee production will worsen unless they are permitted to sell directly to purchasers.
Uganda
Ugandan Coffee Exports for February 2023 up 6.27% In Volume but Down 8.78% In Value YoY
Ugandan coffee exports for February 2023 were 478,646 60kg bags valued at USD 66.03M. Robusta coffee was the most exported, with 373,559 bags valued at USD 44.75M, while Arabica coffee came in at 105,087 bags valued at USD 21.27M. This is a 3.25% decrease compared to the 494,226 bags exported in January valued at 67.35M USD. In comparison to February 2022, this was a 6.27% increase in volume exported but a decrease of 8.78% in value.
Ecuador
Ecuador Industrialises Coffee Beans From Vietnam and Brazil
The soluble coffee industry imports beans from other countries since Ecuador produces relatively little coffee. Ecuador has shifted its focus in recent years from being a significant producer of coffee beans to industrialising soluble or instant coffee. Due to the country's small agricultural coffee production, imported coffee beans have become an increasingly important source of supply for this industry. Ecuador produces around 250,000 60-kg bags of coffee each year in its two varieties: Arabica and Robusta. This quantity does not meet the internal demand, which is about 300,000 bags per year.
Nigeria
Taraba Coffee Farmers in Nigeria Struggle Amid Funding Challenges
Notwithstanding the country's potential for commercial production, the federal and state administrations have completely ignored one crop: coffee. Irrespective neglect, some smallholder farmers who are still passionate about the cash crop continue to profit from coffee, as seen by the situation in Taraba State's Sardauna Local Government Area. In addition to other cities in Sardauna, there are several small-scale coffee farmers in Kusugu, Kakara, Nguroje, Yarimaro, Yelwa, and Likitaba. Because they lack the funds to establish large farms, the majority of farmers, it was discovered, only produce a few bags of coffee beans.
Peru
Peruvian Coffee Exports to Colombia Were Worth USD 77M in 2022
The value of Peruvian agricultural exports to South America was USD 459M. The potential of this market is demonstrated by the fact that this sum is 14% more than the USD 404M accumulated in 2021. With USD 164 million (or 36% of the total value) in purchases from Peruvian agro-exporters, Colombia came in second place. The most valuable exports to the northern nation were coffee (USD 77M), grapes (USD 23M), and onions (USD 16M), which together accounted for 72% of the overall value.
Tea
Kenya
Kenya Tea Industry Performance Highlights for the Year 2022 and December 2022
Kenya produced 2.79M kgs less tea overall in 2022 than it did in 2021 (537.83M kgs total), coming in at 535.04M kgs. The Tea Board of Kenya claims that the reason for the year 2022's lower production was due to depressed (below average) and unevenly distributed rainfall in the months of March and April during the "long Rains" season and in November during the "short Rains" season.
Kenyan Tea Still Held in Karachi Port in Pakistan Despite the Letter of Credit Order
Even though Islamabad issued an instruction allowing banks to issue traders a letter of credit (LC) to release the cargo five days ago, Kenyan tea is still being held at the Karachi port. In order to enable banks to issue LCs for tea, the State Bank of Pakistan on Thursday categorised tea as an important food item. Since last month, nearly 200 containers of Kenyan tea have been held at the port in Karachi as traders lack LCS, which is mandatory before the ships are allowed to offload the beverage.
Vietnam
New rules regarding chemical residues in food and agricultural goods were published by the EU on March 11. This includes agricultural goods and foods, particularly fresh and frozen fruits, vegetables, tubers, and fruits; a group of cashew nuts; coffee, tea, spices, cereals, and oilseeds; and terrestrial animal products of all kinds, such as eggs, milk, etc.
