W9: Weekly Coffee & Tea Update
Coffee
Brazil
With 21.3M Bags, Brazil Has a Drop in Coffee Consumption in the Domestic Market in 2022
With 21.3M bags, Brazil saw a 1.01% decline in domestic coffee consumption in 2022. According to Conab, this amount represented 41.8% of the harvest in 2022, which totaled 50.9M bags. Brazil continues to be the world's second-largest consumer of coffee with this amount, importing about 4.7M bags from the United States. High inflation in 2022 is the cause of the consumption decline.
Coffee Crop at Risk Due to Climate Change
Forecasts for Brazil's delicate Arabica coffee crop indicate a shift in the rainy season that could endanger the crop's flowering phase and, eventually, production. Arabica coffee crops are particularly vulnerable to unpredictable weather. For instance, the extreme drought of 2021 and the unanticipated late-season frosts, are still having an impact on Brazilian coffee trees. The crop's sensitivity to weather is also reflected in current coffee pricing. After January and February saw severe rains impact Minas Gerais, Brazil's largest coffee-growing region, coffee futures prices have increased by 26% to 182.20 cents per pound of green coffee. Minas Gerais experienced its highest rainfall totals in twenty years during these months.
Brazil Exports 42% Less Coffee in February 2023
Brazil exported 42% less coffee YoY in February, with shipments totaling 2.04B bags, according to data from the Foreign Trade Secretariat (Secex), which was released on Wednesday, March 1. This was despite the uncertainty surrounding the world's supply of coffee and the high level of price volatility. 3.47B bags were shipped in the same time frame in 2022.
Accompanying Rains in Brazil, Coffee Starts the Week With Pressure in New York
This Monday, February 27, on the New York Stock Exchange, the Arabica coffee futures market concluded the first trading session of the week with a devaluation for the key contracts (ICE Future US). In May/23, the price fell by 125 points to 186.45 cents/lbp; in July/23, the price fell to 184.90 cents/lbp; in September/23, the price fell by 100 points to 182.75 cents/lbp; and in December/23, the price fell by 95 points to 180.70 cents/lbp.
Coffee Opens With Devaluation, Keeping Focus on the Rains in Brazil and Slow Marketing
The main contracts on the New York Stock Exchange were devalued when the Arabica coffee futures market began trading in W9 (ICE Future US). The reference contract closed W9's trading session with gains in the futures market. Concerns over the Brazilian supply of coffee continue to support the market, and the industry is keeping an eye on the effects of excessive rainfall in Brazil's coffee-growing regions. As of May/23, the price was down 120 points, or 186.50 cents/lbp. As of July/23, the price was down 100 points, or 185 cents/lbp. As of September/23, the price was down 50 points, or 183.25 cents/lbp. As of December/23, the price was down 60 points, or 181.05 cents/lbp.
Coffee Maintains Bearish Bias and Returns to Trading Below 190 Cents/lbp
During the trading session on Monday, February 27 on the New York Stock Exchange, the Arabica coffee futures market continued to devalue (ICE Future US). The 23-month average fell by 145 points in May, trading at 186.25 cents/lbp, 160 points in July, at 184.40 cents/lbp, 130 points in September, at 182.45 cents/lbp, and 190 points in December, at 179.75 cents/lbp.
Vietnam
Coffee Prices in Vietnam Today, March 5, 2023: This Week Increased by 600-800 VND/KG
On March 5, 2023, the price of coffee remain between USD 2.01-2.02/kg. While the domestic coffee market saw a significant boost in W9, the global coffee market had uneven fluctuations. In particular, the price of Lam Dong coffee is currently USD 2.01/kg in the three districts of Di Linh, Bao Loc, and Lam Ha. Today's coffee price in Dak Lak's Cu M'gar district is USD 2.02/kg (VND 48,000/kg). The price of coffee today in Ea H'leo and Buon Ho districts is USD 2.02/kg (VND 47,900/kg).
Coffee Price in Vietnam Today On 4 March 2023
In the domestic market, the price of coffee today on March 4, 2023, decreased by USD 0.0084/kg from yesterday. In particular, the cost of Lam Dong coffee is currently USD 2.01/kg (VND 47,600/kg) in the districts of Di Linh, Bao Loc, and Lam Ha. Today's coffee pricing in Dak Lak's Cu M'gar district is USD 2.02/kg (VND 48,000/kg). The price of coffee in Dak Lak today is USD 2.02/kg (VND 47,900/kg) in the districts of Ea H'leo and Buon Ho.
Vietnam’s Coffee Exports Rebounded in February
Vietnam's coffee exports in the first two months of 2023 totaled 323,000MT, worth USD 703M, a decrease of 13.1% in volume and 14.6% in value YoY. Vietnam's average export price for February 2022 was estimated at USD 2,182/MT, up 0.2% compared to January 2023 but down 3.9% compared to February 2022.
Vietnamese Coffee Market Price on 3 March 2023
The price of coffee climbed by USD 0.0084 on the domestic market, bringing the highest price to USD 2.04/kg (VND 48,300/kg). Gia Lai and Dak Nong were priced at USD 2.03/kg (VND 48,200/kg) and USD 2.02 (VND 47,900/kg), respectively, for Lam Dong.
Vietnamese Coffee Market Price on 2 March 2023
The price of coffee increased by USD 0.025 on the domestic market, surpassing the 48,000 dong/kg threshold. Gia Lai and Dak Nong settled at USD 2.02/kg (VND 47,800/kg), while Lam Dong had the lowest price at USD 2.00/kg (VND 47400/kg) and Dak Lak had the highest at USD 2.02/kg (VND 47,900/kg).
Coffee Price Today in Vietnam and in the World, March 1, 2023: Domestic Price Increases Again
On March 1, two significant exchanges saw adjustments in the price of coffee on the global market. The cost of Robusta coffee on the London market for delivery in May 2023 turned out to rise by USD 7/MT (equal to 0.33%), to USD 2,140/MT. Moreover, the cost of coffee delivered on this floor in July 2023 increased by USD 8/MT (or by 0.38%), to USD 2,129/MT. Moreover, the cost of Arabica coffee for delivery in May 2023 dropped by 0.15 cents/lb (or 0.08%) to 186.30 cents/lb on the New York market. In the meantime, coffee prices on the domestic market rose by USD 0.0042/kg today compared to yesterday. Specifically, the price of Lam Dong coffee (in 3 districts of Di Linh, Bao Loc, and Lam Ha) is currently being purchased at USD 1.97/kg.
Coffee and Pepper Market on 28 February 2023
Today, February 28, 2023, the domestic coffee price closed at USD 1.97-1.99/kg. After almost hitting a 6-month high, coffee prices fell USD 0.0084 domestically. Dak Lak has the highest level at USD 1.99/kg, while Lam Dong has the lowest price at USD 1.97/kg.
Coffee Exports to Markets in January 2023 Reached USD 310.44M
Vietnam's coffee exports fell more than 27.7% in volume and 27% in turnover in January 2023 compared to December 2022, reaching 142,544MT, or USD 310.44M, but the average price increased 1% MoM at USD 2,178/MT. Compared with January 2022, this is a fall of more than 12.7% in volume, 16.2% in turnover, and 4% in price. In January 2023, 15.1% of the entire volume and 13.6% of the country's total coffee export revenue came from Vietnam, which sends the most coffee to Germany.
Kenya
Baringo Targets 2.5M Coffee Bushes to Boost Bean Production
The governor of Baringo, Benjamin Cheboi, has committed to lead an effort to provide high-quality coffee seedlings to all of the county's coffee-potential locations. Governor Cheboi declared his administration's commitment to boosting the income of local farmers and protecting them from fraudsters who might wish to take advantage of them during the official launch of 500,000 subsidised coffee seedlings.
United States
Pressured by Global Supply, Coffee Keeps Lows in New York This Friday
This Friday, March 3 trading session on the New York Stock Exchange saw the Arabica coffee futures market continuing to trade to the downside of the chart (ICE Future US). This time, the export figures from Honduras influence foreign price quotes. The market, which was already restricted, is even slower on a bearish day. The industry in Brazil keeps an eye out for a respite in the relentless downpours in the key production regions. A decline of 445 points in May/23, worth 177.75 cents/lbp, a drop of 425 points in July/23, worth 177.15 cents/lbp, a drop of 410 points in September/23, worth 175.75 cents/lbp, and a low of 385 points in December/23, worth 173.85 cents/lbp.
Arabica Coffee Ends With Correction, While Concern About Vietnamese Offer
The main contracts on the New York Stock Exchange experienced a devaluation as the Arabica coffee futures market ended trading on Wednesday, January 1. March started out with a technical correction in negotiations following a month of extremely high price volatility. May/23 had a decline of 275 points, traded at 183.55 cents/lbp, July/23 experienced a drop of 275 points, quoted at 182.15 cents/lbp, September/23 had a devaluation of 265 points, worth 180.15 cents /lbp and December/23 had a drop of 260 points, worth 178.15 cents/lbp.
US Tests New Highs for Coffee This Tuesday: Market Following Crop Estimates in Brazil
The New York Stock Exchange's Arabica coffee futures market began trading on Tuesday, February 28, testing new highs (ICE Future US). In May/23, the price increased by 85 points to 187.25 cents/lbp; in July/23, the price increased by 70 points to 185.60 cents/lbp; in September/23, the price increased by 25 points to 183 cents/lbp; and in December/23, the price increased by 125 points to 181.95 cents/lbp.
Coffee Tries to Advance in NY, but There Are Doubts About Production Limit Gains
Attempts to advance the Arabica coffee futures market on the New York Stock Exchange this Monday, February 28, are ongoing. In the morning, the market gained more than 200 points, but early afternoon gains were modest. May/23 was up 25 points and traded at 186.70 cents/lbp, July/23 was up 15 points and traded at 185.05 cents/lbp. September/23 reached a high of 5 points, worth 182.80 cents/lbp and December/23 had a drop of 30 points, worth 180.40 cents/lbp.
Rwanda
Rwanda Coffee Exports Surpassed USD 100M in 2022 Due to High Coffee Prices
According to the National Agricultural Export Development Board (NAEB)’s December 2022 report, revenue from Rwanda’s coffee exports increased by 34% YoY from USD 78.3M in 2021 to more than USD 105M in December 2022. With this performance, the country has already surpassed the target to generate USD 95M from coffee exports annually by 2024. Additionally, there was a slight increase of 2% YoY in coffee export volume from 17,479MT in 2021 to 17,848MT in 2022. The growth in revenue mainly resulted from high coffee prices averaging USD 5.58/kg in 2022, with a rise of 31.2% YoY from USD 4.48/kg in 2021. The increase in coffee prices at the international market was also felt locally, with farmers earning more from their products as a result.
Tea
Kenya
Kenya in Talks to Barter Tea for Pakistani Rice
Kenya is pushing for barter trade on tea in exchange for rice imports from Pakistan as it works to support the main consumer of its beverage in the aftermath of major economic difficulties in Islamabad caused by a lack of dollars. Mithika Linturi, the cabinet secretary for agriculture, is currently in Pakistan, where the debate over whether Kenya might import rice from that country in return for tea will take centre stage. Kenya is concerned that Pakistan's financial difficulties, which have already had an impact on the Mombasa auction's tea trade, could get worse soon.
