On Tuesday, coffee prices continued to plummet despite the average rainfall in Brazil easing drought worries, which is a bearish factor for the commodity’s costs.
In the Asian afternoon session, the US crop futures for December contracts slid by -1.11% to $2.49 per pound. London coffee futures for January delivery declined by -2.19% to $4,421.00 per metric ton.
Furthermore, sources revealed that Brazil’s Minas Gerais region has received 36.80mm of rain over the last week, or 115.00% of the historical average.
According to reports, meteorologists in Brasilia have forecast rain in the region from Friday onwards, which may keep temperatures mild and improve soil moisture levels.
Meanwhile, the International Coffee Association disclosed that global coffee exports increased by 6.50% annually to 10.92 million bags. Moreover, shipments surged 9.90% yearly from October to August to 125.67 million bags.
In addition, data released showed that Brazil’s September green coffee exports increased by 34.00% year over year (YoY) to 4.10 million bags. It also reported that the country’s 2023/24 shipments rose 33.00% YoY to a record high of 47.30 million bags.
The USDA’s Foreign Agriculture Service (FAS) revealed that it forecasted that global coffee production for next season will rise by 4.20% YoY to 176.24 million bags.
Vietnam Logs Record High Coffee Export Value
According to reports, Vietnam coffee shipment has reached over $5.43 billion in the current crop year, marking its record high in the commodity season.
Sources revealed that the country’s export value rose by 33.10% compared to the last crop year. This signaled its debut coffee shipment turnover surpassed the $5.00 billion mark in a single season.
Meanwhile, Coffee and Cocoa Association Chairman Nguyen Nam Hai attributed the rise in value to increased prices. During the said crop year, Hanoi’s average export price was $3,673.00 per ton, which was almost 50.00% higher than the prior year.
Furthermore, with the costs, coffee is the shipped product with an intense price hike among the country’s major agriculture exports.
