Coffee Prices (Q1 2022)
Following a decline in London prices due to interruptions in supply chains and payment systems, as well as increased oil prices as a result of the recent Russia-Ukraine conflict, domestic coffee prices in Vietnam fell in the first quarter. Farmers in Vietnam's Central Highlands, the country's largest coffee-growing region, sold coffee COFVN-DAK for 38,900-41,000 VND/kg (1.70-1.80 USD) in the first week of March, down from 40,600-41,800 VND/kg the previous week.
Germany continued to be the largest consumer of Vietnamese coffee, accounting for 18.4% of total volume and 17.5% of total coffee export turnover, with 30,086 tons, equivalent to USD 64.71 million, at an average price of 2,151 USD/MT compared to December 2021. Belgian coffee exports ranked second in terms of volume and turnover, accounting for 14.6% of total volume and 12.5% of total coffee export turnover, with 23,877 tons, equivalent to USD 46.18 million, at an average price of 1,934 USD/MT, a decrease of 9% in price, compared to December 2021.
Coffee prices increased in January 2022, hitting 204.29 US cents/lb, continuing the upward trend begun in 2021. The intra-day volatility of the ICO composite indicator price dropped by 1.8 percentage points to 8.3 percent in January 2022. The arbitrage between Arabica and Robusta coffees climbed by 3.9% to 135.07 US cents/lb, as assessed on the New York and London futures markets. Arbitrage between the two futures markets has quadrupled in a year, from 67.05 US cents/lb in January 2021 to 135.07 US cents/lb in January 2022. Certified stocks on major coffee markets continued to decrease, plunging 16.2% in New York and 5.4% in London, respectively.
From December 2021 to January 2022, the largest price increases were in the Colombian Mild and Brazilian Naturals classes, which averaged 294.93 US cents/lb and 233.80 US cents/lb, respectively. This marked a 1.5% gain for both groups over the earlier month's figures of 290.57 US cents/lb and 230.26 US cents/lb, respectively. During January 2022, prices for Other Mild grew by 1.3% to 271.08 US cents/lb, up from 267.71 US cents/lb the previous month. Robusta, which was priced at 109.71 US cents/lb in January 2022, dropped 2.7% in the earlier month.
Coffee Prices (Q4 2021)
Indian exports increased by 28% in 2021, owing to a rebound in demand in the world's largest coffee-consuming countries in the second half of the year. Exporters are hesitant to match it in 2022, owing to the fear surrounding the current variant of COVID-19. Karnataka is India's largest coffee grower, accounting for over 70% of national production. Meanwhile, the Kerala government chose to purchase this commodity from marginal farmers in Wayanad, the state's primary coffee producing region, at a premium of 10 INR/kg over market prices. Kerala is the country's second largest coffee grower. The state government also budgeted INR 50 lakh for the acquisition of 455 MT of the produce.
The prices have risen to a 10-year high, and economists predict that market tightness will last until 2023. Contracts for December delivery were trading at 2.34 USD/lb on Monday. Coffee futures on the New York Intercontinental Exchange hit 2.46 USD on Thursday, the highest price since the commodity broke above 3 USD/lb in 2011. Meanwhile, the benchmark price set by the International Coffee Association was 2.07 USD/lb, up 85% from a year ago.
According to data produced by the National Institute of Statistics and Geography (INEGI) at the end of November, typical coffee prices from brands like as Nescafé, Legal, and Starbucks did not reflect the increase witnessed in Arabica contracts, which are primarily exported from Brazil and Colombia. Others, such as the average price of a 500-gram bag of normal coffee from Punta de Cielo, increased by 20.13% from November of last year to November of 2021.
Droughts followed by harsh frosts in Brazil, which produces one-third of the world's coffee, were responsible for a surge in its prices. According to Conab, a crop forecasting agency, producers gathered over 40% less arabica coffee, the world's most consumed type, than they did last year. Meanwhile, in Colombia, the second-largest exporter of arabica, heavy rains wreaked havoc on fields. Supply chain issues, such as port congestion or a shortage of personnel along with rising energy costs, which affect fertiliser prices, also led to higher prices.
Coffee Prices (Q1-Q3 2021)
Indian prices of this commodity are highly correlated with world pricing, as around two-thirds of the country's three lakh tonnes of coffee is exported. Over the last four months, the premium that Indian arabica parchment commands over the New York ICE terminal has nearly halved to 30-37 cents per pound over the terminal, down from 60-65 cents in mid-December. Similarly, LIFFE has reduced the premium for robusta parchment by half.
Farm gate prices of this commodity in Karnataka had fallen by 6-7% over the last four months, despite the fact that global prices remained unpredictable. Arabica May 21 futures on ICE increased to 132 cents per pound, up from around 128 cents in early April. Similarly, LIFFE's May 21 Robusta futures were hovering around at 1,365 USD/MT, up from 1,350 USD/MT in early April.
In August 2021, the average price of New York traded Arabica beans grew to 2.03 USD/lb, a 66% gain since the end of 2020. Coffee futures prices surged as a result of predicted crop losses in Brazil, the world's largest coffee grower and exporter. According to USDA predictions, severe droughts in Brazil might cut the 2020-2021 Arabica coffee harvest by 30% compared to the previous market year and by 23% compared to the 2017-2021 average. Increasing sea fright prices also contributed to rise in its prices. Brazil produces 40% of Arabica coffee beans and exports 27% of the world's coffee beans. It provides 30% of the coffee beans imported by the United States.
The Brazilian naturals indication saw the largest price increase, reaching 174.89 US cents/lb in August 2021, up 8.9% from 160.62 US cents/lb in July 2021. Brazilian Naturals' average monthly price was at an all-time high of 181.43 US cents. The price of Colombian Milds climbed by 3.1% to 225.40 US cents. In August, the price was 218.66 US cents/lb, down from 218.66 US cents/lb in July 2021. The monthly average recorded by the Colombian Milds in August 2021 was the highest since the level in February 2012, when a price of 244.14 US cents/lb was recorded. It also indicated a 46.1% increase over the previous level. In October 2020, 154.28 cents/lb was recorded.
Coffee Prices Overview 2020
According to the board's final projections, India's total coffee production between 2020 and 2021 was 3.69 lakh tonnes, with 2.35 lakh tonnes of Robusta. A little more than 1.64 lakh tonnes were shipped out of this total. The average price of the commodity in India was 2400 USD/MT, recording a high of 4300 USD/MT in May.
Its consumption per capita increased to 168 litres in 2020. Coffee drinking at home is credited with the good trend. Last year, there was an increase of roughly 11% (+ 37,900 tonnes of roasted coffee). In the same time span, consumption in gastronomy, at work, and outside of one's own four walls declined by 23%. (- 30,300 tonnes of roasted coffee). Domestic consumption growth more than outweighed the declines in the out-of-home coffee market.
During the 2020/2021 campaign, both Arabica and Robusta coffee harvests were lower than predicted. As a result, its inventories decreased, and stock prices increased. Throughout the year, the price of Arabica coffee hovered around 1.2 USD/lb, with the lowest prices being 1.1 USD/lb. Climate change was one of factors hurting worldwide output of the commodity, which contributed to the fall in stockpiles. Brazil endured severe droughts in 2020, which harmed Arabica coffee plantations. This sparked panic, as analysts estimated that the Brazilian harvest may be reduced by 15 to 20 MMT.
Procurement Resource provides latest prices of Coffee. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Coffee for several regions around the globe, which are as follows:
Coffee is a well-known brewed drink that is produced from roasted coffee beans. These coffee beans are the seeds of berries belonging to certain Coffea species. It is darkly colored, bitter, moderately acidic, and has a stimulating effect in humans as it is a rich source of caffeine. As it has become one of the most popular drinks in the world, coffee plants are now cultivated in over 70 countries, mainly in the equatorial regions of the Americas, Southeast Asia, the Indian subcontinent, and Africa.
Coffee beans are turned into a beverage in a process consisting of four basic steps. First, the coffee beans are roasted, which are then ground. The ground coffee is then combined with hot water, that is, brewed and finally the liquid Coffee is separated from the used grounds. Although, at homes, it is generally prepared from already roasted, or already roasted and ground beans.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).