W13: Weekly Coffee & Tea Update
Coffee
Brazil
Harvest of Canephora Coffee Begins in Espírito Santo
In some regions, Espírito Santo has already begun collecting its first canephora (robusta) coffees. It is currently too early to evaluate the new season, but based on the unfavourable weather at the start of the cycle, producers think the production will be below potential. Prices responded by beginning to climb towards the end of March after dropping somewhat sharply in the internal market during the first three weeks of the month.
Positive Climate in Brazil and Uncertainty in Demand Weigh and Coffee Has Another Day of Losses
On Wednesday, March 29, the New York Stock Exchange saw another day of price pressure on the Arabica coffee futures market. May/23 dropped 405 points and traded at 169.70 cents/lbp. July/23 fell 405 points and was quoted at 168.95 cents/lbp. September/23 lost 390 points and was valued at 167.75 cents and December/23 had a devaluation of 370 points, quoted at 166.55 cents/lbp.
Coffee Remains the Product With the Highest Number of GIS in Brazil
There are 14 Geographic Indications entries for Café at the National Institute of Industrial Property. Of the total, nine are Indication of Origin (IP) and five are Denomination of Origin (DO). The Indication of Origin license was most recently obtained by the Region of Garça (SP). As a result, coffee continues to have the most Geographical Indications (GI) documents of any agricultural commodity from Brazil.
Coffee Fails to Sustain a Positive Scenario and Returns to Operate With Losses in the US
This Monday morning, March 27, on the New York Stock Exchange, the Arabica coffee futures market went back to trading in the negative after attempting to progress to start W13. Coffee producers continues to see a market that is highly unstable, which confirms the pattern anticipated by analysts. The producer notices the strain on prices as Brazil's crop draws near.
May/23, decreased by 70 points to 178.55 cents/lbp, July/23, decreased by 50 points to 177.80 cents/lbp, September/23 decreased by 50 points to 176 cents/lbp, and December/23 decreased by 50 points to 174.05 cents/lbp.
Vietnam
Coffee Market Today in Vietnam on March 30: Prices on Two World Exchanges Continue to Plunge
Price changes In the domestic market, the price of coffee fell by USD 0.013/kg in key Central Highlands areas. Dak Nong, at USD 2.04/kg, has the lowest price in Lam Dong and the highest in Dak Lak and Gia Lai. Robusta's price for May 2023 on the London floor was USD 2,170/MT on the global exchange, down USD 15, or 0.69%.
The price of coffee dropped by USD 0.021/kg on the domestic market. Dak Lak and Gia Lai ended at the highest level, and Dak Nong has a price of USD 2.06/kg. Lam Dong has the lowest price, losing the mark of USD 2.05/kg. On two exchanges, the price of coffee fell significantly in the global market. The price of Robusta for May 2023 dropped by USD 29, or 1.31%, to USD 2,185/MT on the London market. The cost of arabica on the New York Stock Exchange for delivery of the same term decreased by 3.15 cents, or 1.78%, to end at 173.75 US cents/lb.
Agricultural Product Prices in Vietnam on March 28, 2023: Coffee Continues to Increase
Coffee prices are rising by USD 0.0085/kg. Particularly, the price of coffee is at USD 2.06/kg in the Di Linh area (Lam Dong). Coffee costs USD 2.06/kg in Bao Loc (Lam Dong) and Lam Ha (Lam Dong). Today's pricing for coffee in Dak Lak's Cu M'gar district is USD 2.08/kg.
Coffee Exports in the First 2 Months of 2023 Decreased in Vietnam
Vietnam's coffee exports rose significantly in February 2023 compared to January 2023 in terms of both volume and value, by over 40%, albeit the price fell slightly by 0.2%, reaching 200,056 MT worth USD 434.91M with an average price of USD 2,173.9/MT.
World Coffee on March 28 With Stable Pepper Prices in the Context of Abundant Supply
The domestic price of coffee as of today, March 28, 2023, is USD 2.06-2.08/kg. The price of coffee on the two exchanges moved in different directions on the global market. Robusta futures for May 2023 increased by USD 25, or 1.14%, to USD 2,214/MT on the London floor. The cost of arabica on the New York Stock Exchange for delivery of the same period decreased by 2.35 cents, or 1.31%, to settle at 176.9 US cents/lb.
World Coffee Market on March 27 Where Vietnam’s Coffee Increased Sharply According to World Prices
The domestic price of coffee today, March 27, 2023, stood at USD 2.06-2.07/kg. Futures for coffee saw a strong rise in price. Meanwhile, in the global market, the cost of coffee on the two exchanges significantly increased. The price of Robusta for May 2023 climbed by USD 65 (3.06%) to USD 2,189/MT on the London floor. The price of arabica for delivery during the same period increased by 4.95 cents, or 2.84%, to settle at 179.25 US cents/lb on the New York Stock Exchange. Prices for robusta climbed by 6.06% overall over the entire 12-week period, and prices for arabica increased by 1.5%, both considerable gains.
Indonesia
The Coffee Producers in Indonesia Closed Delivery Schedule Contracts in April 2023 Due to Low Supply
The producers of Sumatran Robusta coffee beans have closed contracts for April 2023 delivery while calculating their commitments for May and June 2023 delivery contracts. In W13, a low supply of coffee beans prevents from offering additional volume or new contracts. The decline in yields in the Q1 of 2023 resulted in reduced production of Sumatra robusta coffee beans, especially for high grades, grades 1 to 3 (referring to the Indonesian national coffee grading standard). Producers estimate the decline to be more than 30% in 2023, due to weather factors.
The Price of Robusta Coffee Is Increasing in Sumatra, Indonesia Due to a Shortage
The price of the robusta coffee bean from Sumatra in Indonesia continues to rise every week. In W13, prices at the producer level rose around 4-5% compared to W12 due to reduced yields supplied by farmers. It is suspected that this is due to the intensity of rainfall since Q4 of 2022.
United States
After Two Days of Devaluation, Arabica Coffee Opens With High Techniques in New York
This Wednesday, March 29, the New York Stock Exchange's Arabica coffee futures market began dealing after two days with low prices. The weather in Brazil's coffee-producing regions has continued to put pressure on the market during this off-season. The crop benefited from the rainfall at the beginning of 2023, and even though there are fewer fruits per rosette this year, the amount of water should help the crop produce. Business is still halted at every link in the chain in the absence of any significant news.
In the trading period on Wednesday, March 29, on the New York Stock Exchange, the Arabica coffee futures market resumed operation with price depreciation. Early in the afternoon, the product declined by more than 2% overseas under pressure from favourable weather conditions in Brazil. There were 415 points lost in May/23, which were quoted at 169.55 cents/lbp, 415 points lost in July/23, which were quoted at 168.85 cents/lbp, 410 points lost in September/23, which were quoted at 167.55 cents/lbp, and 415 points lost in December/23, which were quoted at 166.10 cents/lbp.
This Tuesday, March 28, the Arabica coffee futures market began dealing, extending the lows for the major contracts on the New York Stock Exchange. As harvest time draws near, Brazil's drier weather has a negative impact on costs. On the other side, the producer hasn't changed much in terms of market participation. A decline of 155 points occurred in May/23, worth 175.35 cents/lbp; 175 points in July/23, worth 174.40 cents/lbp; 175 points in September/23, worth 172.80 cents/lbp; and 155 points in December/23, worth 171.35 cents/lbp.
Pressure From the Brazilian Crop Persists and Arabica Retreats More Than 1% In NY
During the trading session on Tuesday, March 28, on the New York Stock Exchange, the major contracts for Arabica coffee futures experienced another day of devaluation. In May/23, the price fell by 315 points to 173.75 cents/lbp; in July/23, the price fell by 315 points to 173 cents/lbp; in September/23, the price fell by 290 points to 171.65 cents/lbp; and in December/23, the price fell by 265 points to 170.25 cents/lbp.
Climatic Conditions Still Weigh and Arabica Coffee Continues to Operate in the Negative
In the trading period this Tuesday, March 28 on the New York Stock Exchange, the Arabica coffee futures market continued to depreciate. Brazil's coffee is still under time strain. The weather is perfect for the final stages of crop growth as harvest time draws near. On the other hand, the producer continues to play a minor role in the market, and neither the purchasing nor selling end is in a rush to complete a transaction. A devaluation of 185 points occurred in May/23, valued at 175.05 cents/lbp, 185 points in July/23, valued at 174.30 cents/lbp, 175 points in September/23, valued at 172.80 cents/lbp, and 175 points in December/23, valued at 171.15 cents/lbp.
With Doubts in the Global Supply, Coffee Prices Try to Advance in the US
The New York Stock Exchange prices were being discussed as the Arabica coffee futures market began W13. The coffee producer continues to monitor a highly volatile market. Prices were ultimately pressured due to the approaching Brazilian crop and the uncertainty surrounding consumption in significant consumption poles like the United States. Although every statistic that reaches the market indicates that world production will fall short of world consumption, very small stocks will decline, and global consumption will increase, market participants' attention is still firmly fixed on the different private estimates of Brazil's coffee harvests in 2023.
Favorable Conditions for the Brazilian Crop Weigh and Arabica Starts Week With Losses
The major contracts on the New York Stock Exchange for Arabica coffee futures depreciated at the end of the first trading day of the week. The Brazilian harvest is still exerting pressure on the coffee market. In the primary producing regions of the country, the weather is better after an abundance of rain at the start of 2023.
A devaluation of 235 points occurred in May/23, valued at 176.90 cents/lbp, a devaluation of 215 points occurred in July/23, valued at 176.15 cents/lbp, a decline of 195 points occurred in September/23, valued at 174.55 cents/lbp and a drop of 160 points occurred in December/23, valued at 172.90 cents/lbp.
Kenya
Coffee Growers in Mount Kenya Demand Direct Access to Buyers
Kenyan coffee growers in the Mt. Kenya area are urging the Kenya Kwanza government to scrap the Nairobi Coffee Exchange and permit producers to do business directly with consumers to expand the market. Per the laws governing the sale of coffee, currently, no one is permitted to sell clean coffee other than through the Nairobi Coffee Exchange, which, according to farmers, offers subpar prices of between USD300-350/50 kg of clean coffee.
Peru
The harvest of 2022, which yielded 228,000MT of green coffee, represents a remarkable 12% rise in comparison to the production of coffee, which began two weeks ago in regions below 1,000 metres above sea level. The technical assessment in the northeastern coffee corridor, including Cajamarca, Amazonas, and San Martin, as well as in Junín, Oxapampa, Huánuco, and Ucayali, reports a potential harvest of 255,000MT, encouraged by good farming practises on the farms, particularly the application of fertilisers, despite their high cost.
Tea
Egypt
Egypt’s Tea Imports Reached USD 314M by the End of 2022
At the end of 2022, Egyptian tea imports had significantly increased compared to the same time in 2021. By the end of 2022, the total value of imports had increased by about USD 57.81M from the end of 2021 to USD 314.82M.
Kenya
Kenyan Tea Exports to Russia Fall USD 8.23M Due to War
The value of Kenyan farmers' exports of tea to Moscow has been reduced as a result of the Russian-Ukrainian conflict. The value of Kenya's tea exports to Russia decreased from USD 46.4M in 2021 to USD 38.17M in 2023, according to data from the Kenyan Tea Board. This was related to the 2022 conflict, which had just begun.
