Market Briefing: Coffee -17 July 2021

– Ugandan coffee exports hit 30-year high
– Japanese green coffee stocks totaled 2.863 million 60-kg bags at the end of May
– Vietnamese coffee exports in June amounted to 128,036 tonnes

Production

– Brazil’s 2021/22 robusta harvest has virtually been concluded in Rondônia, while progress in Espírito Santo stood at 70-80%. Progress was slowed by a high share of green beans and a lack of work force. Harvest progress with arabica stood at 50-60% in Zona da Mata, 40-50% in Garça and in Cerrado Mineiro and 30-40% in northwest Parana. In Sul de Minas and Mogiana, it stood at slightly below 30%, Harvest pace was supported by recent dry weather conditions, while low temperatures in May and June and earlier blossoming delayed crop development.

Demand

– Japanese green coffee stocks held in ports amounted to 2.863 million 60-kg bags at the end of May 2021, up from 2.808 million at the end of the previous month but 38,967 bags below the count at the same time last year. This was the 14th straight month during which stocks were lower than in the same month last year even though the year-over-year decline is rather small. Most of the beans were from Brazil, followed by Central America and Colombia.

Trade

– Ugandan coffee exports totaled 618,388 60-kg bags in June, up from 420,563 bags one year earlier and the highest ever in a single month since 1991. This brought total coffee exports to 4,509,437 bags, up from 3,791,089 a year ago.
– Vietnamese coffee exports in June amounted to 128,036 tonnes compared with 130,285 tonnes in May and 127,700 in June 2020. This brought total exports to around 1.157 million tonnes down from 1.302 million tonnes in the same period a year ago.
– Brazilian green coffee exports in June rose 0.3% over the same month a year ago to around 2.730 million 60 kg bags, with limited shipping capacity still a problem. So far in the current cycle, a total of 8.933 million bags was exported, up 5.2% on 2019/20.

Price

– Coffee future prices settled higher by Wednesday (July 14) with the market gaining support partly from a strengthening of the real against the dollar. The benchmark September arabica coffee contract settled up 4.35 cents at 156.60 cents per pound.
– The index for arabica coffee type 6, delivered São Paulo state, closed at BRL854.69 per bag, as of 12 July, up 1.9% on one week earlier. The one for robusta was up 5% at BRL527.94. Support came from higher world market prices and a lack of selling interest for arabicas.

Source: https://vietnamentrepreneurs.com/market-briefing-coffee-17-july-2021/