On Tuesday, coffee prices traded higher on scant rainfall in Brazil as Somar Meteorologia reported that the Minas Gerais region received 0.60 mm of rain.
US coffee futures prices for December delivery increased by 2.79% to $249.68 per metric ton (MT) on August 27’s Asian afternoon session.
The arabica crop hit a two-and-a-half-year nearest-futures high. Moreover, robusta reached a record high due to the weather conditions in Brazil and Vietnam.
Lower exports of the commodity from Vietnam, the largest robusta producer in the world, support its prices. Excessive dryness in Brazil could adversely affect the crop’s trees and reduce yields driven by premature flowering.
Furthermore, the top Brazilian coffee cooperative said the beans’ trees remain stressed as numerous planting regions lacked rain in the last 120 days.
Based on reports from the General Department of Vietnam Customs, the country’s shipments dropped by -29.30% year-over-year (YoY) to 76,982 MT. Also, its January to July deliveries slid by -12.40% YoY to 979,353 MT.
Meanwhile, robusta prices are underpinned by concerns that unfavorable weather in Vietnam will damage crops, affecting future global production. In addition, coffee trader Volcafe stated that Hanoi’s 2024/25 robusta production could only reach 24 million bags, marking the lowest in 13 years.
Kirinyaga Coffee Farmers Aim for Bigger Global Shares
Kirinyaga County coffee farmers aim for a more significant global export market share. This came amid industry reforms that continue to bear fruits.
The Kirinyaga County Cooperative Union Limited partners with buyers to push additional volumes due to farmers’ stronger production. Moreover, the region’s crop obtained higher prices due to its excellent quality.
According to the cooperative chairman, the group supports farmers through revolving funds, enabling them to access farm inputs like fertilizer and working capital. These factors are anticipated to drive production.
Additionally, solid coffee demand from the county driven by top quality would boost the increase in shipments.
