EsGlobal coffee exports increased 9.5% on a year earlier in August, according to data from the International Coffee Organization. In absolute terms this was led by Vietnam (32.3% higher than a year earlier, a 423,000 bags increase), Peru (which doubled to 697,000 bags) and Colombia (17% higher). This bodes well for Peruvian exporters Olam and Cafetalera Amazonica, though Panjiva data for September suggests this may prove fleeting with as much as an 80% drop vs. a year earlier on a preliminary basis. For Colombia, exports are led by Cafe de Colombia, August marked a significant turnaround from a 59.3% drop the month before.
The main laggards were Indonesia (28.4% lower) and Brazil (7.4% below a year earlier). Brazil’s drop relates to dry weather conditions which may have left warehouses near-empty according to Reuters. This suggests the situation for Brazilian exporters including Cooxupe is unlikely to improve soon.
Source: Panjiva
Demand for coffee from the U.S., the second largest market globally after the European Union according to ICO data, has been staging a recovery. Panjiva data for August shows coffee demand was 9.1% higher, with preliminary data for September showing a further 1.8% rise. These have offset July’s drop to bring the third quarter overall to the same level as a year earlier. This firming of demand from buyers, including Rothfos Corp., Starbucks and J M Smucker, may explain the 3.9% rise in prices according to Bloomberg data.
Source: Panjiva
