On Wednesday, coffee prices went down amid a boost in outputs caused by ample rainfall in Brazil, which is helpful to the crop.
Coffee futures for May delivery fell to -0.30% to $189.92 per metric ton on April 12’s Asian afternoon session.
According to analysts’ report on Monday, Minas Gerais, a region in Brazil, received 29.80 mm of rain. As a result, the area is accountable for 30.00% of the arabica crop.
Also, they added that the country’s coffee volumes would go up this year by 13.00% year-on-year to 66.65 million bags. Its exports would climb by 21.00% YoY due to an expected surplus of 45 million bags.
Based on Vietnam’s General Department of Customs Statistics Office, the Asian nation’s storage will rise. It equates to a 5.20% month-on-month increase to 210,372 metric tons. Besides, it is the world’s top producer of robusta beans.
Moreover, the International Coffee Organization (ICO) projects a higher coffee production by 1.70% YoY to 171.27 million bags. In addition, the 2022/23 global consumption will jump by 1.70% annually to 178.53 million bags.
On the other hand, the National Federation of Coffee Growers speculated a drop in the arabica crop in Colombia. It will plunge by -4.80% on an annual basis to 5.00 million bags within the first half of 2023 amid drastic rains.
Costa Rica Reports Strong Coffee Production
On Wednesday, Costa Rica hit an impressive production level in the 2022/23 harvest. The country’s coffee institute said this came after better maintenance and yield of new crops.
The Central American country’s seasonal output was 14.00% higher than the previous month.
Furthermore, it is known for its excellent quality of arabica beans. It was able to produce 1.50 million 60-kilo bags.
According to analysts, plantations had better yield as other crops were renewed and cared for better by farmers. They added that state-of-the-art technology and good agricultural practices benefited the results.
Also, the country’s exports surpassed 90.00% of its production as the prices hit $256.00 per quintal.
