Kaffees, Kakao, Zucker, Gummi und Gewürze

Apr 15 - Bumper Indian cumin supply cuts prices
- Indian cumin seed prices are declining due to the combination of a bumper Indian cumin seed production and carry-over stocks. Indian cumin seed farmers were encouraged by record prices in the previous season, maximizing their use of suitable farm inputs in the process. Indian cumin seed spot prices averaged 23,303 Indian rupees per quintal ($2,787/metric ton) in conventional contracts (lots over three metric tons) at the Unjha market (Gujarat, northwest) on 15 March 2024, 11% less month-on-month and 42% less year-on-year.

Apr 15 - Robusta coffee prices continue to reach historic highs
- The most active robusta contract for July delivery in London settled at $3,790 per metric ton on 11 April, after hitting $3,851/t earlier in the session, the highest level since the current form of the contracts started trading in 2008. This was up $75 on the day and $92 from a week ago. Tight supplies in Vietnam, the world’s largest producer of robusta coffee, remained the main bullish factor. Lack of water for irrigation in the country’s growing areas due to low rainfall was leading to crop concerns.
- In contrast, robusta coffee exports from Brazil in March remained well above from year-ago levels, having hit a record high for the month, according to data released by the industry group Cecafe this week. In New York, the most-active July arabica coffee contract settled at $2.1735 per pound on Thursday, after setting an 18-month high of $2.189/lb during the session. This was up 4.70 cents on the day and 11.55 cents from the previous week. Roasters are boosting arabica coffee share in blends due to the significant increase in robusta prices.

Apr 15 - Sugar prices ease amid positive prospects for production
- The most-active raw sugar contract for May delivery closed at 20.85 cents per pound on 11 April, after slumping to a one-month low of 20.81 cents/lb. This was down 0.61 cents on the day and 1.51 week-on-week. Higher than-expected production in India and Thailand had weighed on sugar prices. In addition, recent rains in Brazil’s main sugar region are expected to improve prospects for the 2024-25 crop, which started this month.

- Similarly, in London, the white sugar contract for May delivery settled at $628.10 per metric ton on Thursday, down $4.40 on the day and $22.60 on the week. The most-active August contract closed at $596.90/t, down $12.10 from the previous day and $28.10 w/w.- Sugar exports from Brazil, the world’s largest producer, continued to grow sharply year-on-year, reaching 2.72 million metric tons in March, 49% more than the same month last year, customs data showed. The market expects sugar production to remain strong in the new season, which is likely to keep exports at high levels.
Apr 12 - Low turmeric production estimate is raising Indian prices- Low inventories and a disappointing crop estimate are fueling Indian turmeric spot prices. The Indian spot fob unpolished turmeric price averaged 15,642 Indian rupees per quintal ($1,877/metric ton) at the Nizamabad market on 5 April 2024 , 8% more month-on-month and 141% more year-on-year. India’s global sales reached 10,490 metric tons, 16% less y/y in January 2024. The main importers were the UAE and Bangladesh, taking 20% and 15%, respectively.

Apr 11 - Vietnam's crop faces water shortage, Indonesia closed for holiday (Reuters)
- Vietnamese coffee prices inched up further this week amid concerns around supplies of the next crop due to a lack of water for irrigation in the growing areas, while the Indonesian market was closed for holidays, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 105,000-105,900 dong ($4.20-$4.24) per kg, up from 101,200-103,000 dong range a week ago.
"Farmers are under no pressure to sell beans especially amid a potential drought that may deepen the shortage," said a trader based in the coffee belt.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $600 per ton to the July contract.
"There was almost no rain. If the lack of water for irrigation continues, coffee output in the 2024/25 crop may decrease sharply compared to the current crop," the Mercantile Exchange of Vietnam said in a note this week.

Vietnam's coffee exports in the first three months of this year were at 585,696 metric tons, up 5.9% from a year earlier, government customs data showed.
The country exported about 188,972 metric tons of coffee in March, a rise of 17.7% from the previous month.

Apr 05 - Vietnam prices edge up further, Indonesian harvest could face delay (Reuters)

 - Vietnamese coffee prices edged higher this week due to concerns about how lack of water and potential drought conditions may affect crops, while in Indonesia, there was concern that the harvest could be delayed until late May or June. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 101,200-103,000 dong ($4.06-$4.13) per kg, up from last week's 98,100-100,200 dong, according to farmers and traders. Vietnamese coffee prices have been on a rising trend since October amid tight supplies."Only when coffee harvesting activities in Brazil and Indonesia start, will farmers stop expecting higher prices and become willing to release more beans," Nguyen Ngoc Quynh, deputy director of the Mercantile Exchange of Vietnam, said in a note to clients this week.Robusta coffee LRCc2 for July delivery settled up $16 at $3,743 per metric ton on Wednesday.- Vietnam exported 799,000 tons of coffee in the first three months of 2024, up 44.4% from a year earlier, government data showed. Coffee export revenue in the same period rose 54% to $1.9 billion, the General Statistics Office said in a report.- In Indonesia, Sumatra robusta coffee beans were offered at a premium of $550 per metric ton to April contracts, down from $720 a week ago, a trader said, adding that prices in London had surged in the last few days."There is still a lack of green beans and a possibility that the harvest could be delayed to the end of May or June," the trader said, without elaborating.Beans were quoted at a premium of $620 to May contracts, down from $750 last week.

Apr 01 - Ivory Coast to raise cocoa farmgate price by 50%
Ivory Coast's President Alassane Ouattara will increase the official cocoa farmgate price to 1,500 CFA francs per kg from Tuesday from the current 1,000 CFA, sources at five different export companies said. The sources, who requested anonymity because of the sensitivity of the issue, said they were citing a decision at a government meeting on Saturday.

Mar 29 - ASIA COFFEE-Prices at record high in Vietnam as dry weather drives supply concerns (Reuters)
- Vietnamese coffee prices rose to an all-time high this week, supported by exceptionally tight supplies and concerns dry weather would reduce next year's crop, traders said Thursday.
Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 98,100-100,200 dong ($3.96-$4.04) per kg, up from 93,000-94,200 dong range a week ago.
A trader based in the coffee belt said farmers had sold most of their stocks and were unwilling to cut prices as people were still willing to buy. The trader also cited the prospect of "less rainfall and higher temperatures" in the coffee growing area, which may reduce output in the next season.

- Robusta coffee LRCc2 for May delivery settled up $92, or 2.7%, at $3,467 per metric ton on Wednesday.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $600-$620 per ton to the May contract.
"With the current low supply situation and negative new crop supply prospects, Vietnamese farmers and traders are still in a 'stockpiling' mood," Mercantile Exchange of Vietnam said in a note earlier this week.
"Due to the supply shortage, there is a high possibility that Vietnamese coffee exporters will limit signing new orders in the second quarter of this year," it added.

- Indonesia's Sumatra Robusta coffee beans for the April contract were offered at $720 premium, down from $820 premium last week, a trader said, saying the reason was a sharp increase in stocks in London. Another trader said for the May contract, the price was $750 premium, unchanged from last week. Indonesia's Sumatra robusta coffee bean exports in February reached 3,221.2 metric tons, data from the local trade office showed on Thursday, down 73.19% from the same month last year.

 

Mar 28 - Brazil's No 1 coffee exporter reports lower 2023 shipments
Brazil's Cooxupe, the country's No. 1 coffee exporter and the world's largest coffee growers co-op, reported on Wednesday a large fall in 2023 shipments due to low prices and logistics bottlenecks. Cooxupe said in its annual report that it had shipped 4.5 million 60-kg bags of arabica coffee in 2023 versus 6.8 million bags in 2022. Total revenues fell to 6.4 billion reais from 10.1 billion reais in 2022.

Mar 22 - Global sugar supply surplus rises on India, Thailand, says broker
The global sugar market is projected to have a larger than expected supply surplus in the 2023/24 October to September season due to production recoveries in India and Thailand in the later stages of their crops, broker StoneX said on Thursday. It projected that global sugar production exceed total demand by 3.88 million metric tons, up from 3.4 million tons seen in February.

Mar 21 - Domestic prices edge higher in Vietnam on tight supply, strong demand (Reuters)

- Domestic prices in Vietnam, the world's main robusta coffee bean producers, were set for hitting a historic milestone of 100,000 dong per kg, as supplies remained tight while demands stayed healthy, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 93,000-94,200 dong ($3.75-$3.80) per kg, up from 90,400-92,000 dong range last week.
"The situation remains the same... supplies are almost empty when demands are strong," said a trader based in the coffee belt. "Domestic prices are reaching the record high of 100,000 dong per kg very soon."

- Robusta coffee LRCc2 for May delivery settled down $39, or 1%, at $3,315 per metric ton on Wednesday.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $550-$650 per ton to the May contract. Another trader said rains had been seen in some areas but there remained a concern over possible water shortage for irrigation, which may hurt the output of the next season.

- In Indonesia, Sumatra robusta coffee beans for April deliveries were offered at $820 premium, unchanged from last week as "coffee prices on London terminal declined, while green bean prices remained high", according to one trader. Another trader $750 premium to the May contract, unchanged from a week ago.

Mar 15 - Asia coffee: Premiums widen in Asian main robusta producers on thin supplies (Reuters)

- Premiums extended gains this week in Vietnam and Indonesia, two main robusta beans suppliers, traders said on Thursday, as supplies remained tight although demand slightly waned due to high prices. Farmers in the central highlands, Vietnam’s largest coffee-growing area, were selling beans for 90,400-92,000 dong ($3.66-$3.73) per kg, up from 89,000-91,000 dong a week earlier.
“Differentials remain high,” said a trader based in the coffee belt. “Supplies are exceptionally thin. Demands still exist but were slightly down due to the prices.” Robusta coffee for May delivery settled down $47 or 1%, at $3,260 per metric ton on Wednesday.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $550-$600 per ton to the May contract.
“The 2024/25 crop is in the flowering stage. There are concerns over a lack of rainfall in the region this season although rains were forecast to return next week,” another trader based in the same region said.

- In Indonesia, Sumatra robusta coffee beans were offered at a $820 premium for the April contract, higher than last week’s $710 premium. “Base price for green beans is expensive now as there is no stock,” one trader said.

Mar 14 - African cocoa plants run out of beans as global chocolate crisis deepens
Major African cocoa plants in Ivory Coast and Ghana have stopped or cut processing because they cannot afford to buy beans, four trading sources said, meaning chocolate prices around the world are likely to soar. Chocolate-makers have already increased prices to consumers, after three years of poor cocoa harvests, with a fourth expected, in the two countries that produce nearly 60% of the world's cocoa.

Mar 07 - Asia Premiums rise in major robusta producers on higher demand, supply concerns (Reuters)

- Premiums climbed further in major Asian robusta beans producers, Vietnam and Indonesia, traders said on Thursday, as demand was high amid depleted stocks. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 89,000-91,000 dong ($3.60-$3.68) per kg, up from last week's 82,700-83,700 dong.
"Farmers and dealers said they have already run out of beans, while I managed to buy very few," a trader based in the coffee belt said.
"Domestic prices have reached the 90,000 per kg mark, while premium kept going up amid weaker dong and higher ICE prices."

- Robusta coffee LRCc2 for May delivery settled up $129 or 4%, at $3,309 per metric ton on Wednesday.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $500-$550 per ton to the May contract, higher than last week's $400-$450 range. According to a Reuters poll released last week, Vietnam's 2024/25 coffee crop was estimated at 29.5 million 60-kg bags.

- In Indonesia, Sumatra robusta coffee beans for the April contract were offered at a $710 premium this week, down from $800 a week ago.
"The higher price was to adjust with the London terminal," a trader said.

- Another trader quoted a premium of $750 to the May contract, up from $700 last week.
"Coffee price increased because demand was higher while supply was limited," the second trader said.

Mar 01 - ICCO sees rising global cocoa deficit in 2023/24 season

 The International Cocoa Organization (ICCO) on Thursday forecast an increased global cocoa deficit in the current 2023/24 season as aged trees and disease contribute to a drop in production in top growers Ivory Coast and Ghana. In a quarterly update, the inter-governmental body predicted a global deficit of 374,000 metric tons in the 2023/24 season (October-September).

Mar 01 - ICE March raw sugar delivery seen at 1.3 mln tns, say traders
Deliveries of raw sugar on the expiry of the March contract on ICE exchange were seen at 25,751 lots, or around 1.3 million metric tons, according to preliminary information from two traders on Thursday. Asian commodities trader Wilmar International was said to be the largest deliverer of the sugar with 22,562 lots, or 1.14 million tons. French trader Sucden was said to be the main receiver with 17,692 lots, or around 900,000 tons, the traders said.

Feb 29 - Coffee Prices inch higher in Vietnam, Indonesia on thin supply, high demand (Reuters)
- Coffee prices edged up this week in major Asian robusta beans suppliers Vietnam and Indonesia, as demand remained high while supplies were exceptionally limited, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 82,700-83,700 dong ($3.36-$3.40) per kg, up from 81,600-82,500 dong range a week ago.
"Demand remains high but supply is very tight," said a trader based in the coffee belt. "It's very hard to buy. Farmers and dealers are strategic in releasing beans."

- Robusta coffee for May delivery settled down $33 or 1%, at $3,044 per metric ton as of Wednesday close.

- Traders offered 5% black and broken-grade 2 robusta at a premium range of $400-$450 per ton to the May contract, compared with the $300-$350 premium range last week.
"$400 is just the threshold to break even. Some even quoted as high as $500 premium," another trader based in the same region said, adding the weather was sunny and dry, and water was sufficient for the trees. Vietnam exported 398,000 metric tons of coffee in the first two months of 2024, up 16.2% from a year earlier, government data released on Thursday showed. Coffee export revenue in the same period rose 67.5% to $1.25 billion.

- Indonesian Sumatra robusta coffee beans for April deliveries were offered at $800 premium this week, up from last week's $720, one trader said.
Another trader quoted $700 premium to the May contract, up from $640 premium a week ago.
"Coffee price rose this week as the demand is higher than supply," the second trader said.

Feb 23 - Ghana's 2023/24 cocoa output seen almost 40% below target, sources say

 Ghana's cocoa output for the 2023/24 season is expected to be almost 40% below a target of 820,000 metric tons, two sources from the country's sector regulator COCOBOD told Reuters. Strong seasonal winds and a lack of rain are among the main factors behind the shortfall, along with smuggling, damage caused by illegal gold mining, and swollen shoot disease.

Feb 22 - Vietnam prices rise on high demand, low supplies (Reuters)

- Vietnam coffee prices rose this week on higher exporter demand after the Lunar New Year, but some farmers are still holding on to beans in hope for higher prices, traders said on Thursday.
Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 81,600-82,500 dong ($3.32-$3.36) per kg, up from 78,900-79,200 dong last week."Demand is high as exporters need beans to fulfil their contracts but beans are too expensive and hard to buy," said a trader based in the coffee belt."The situation may persist until April when Indonesian farmers start to release beans."- Another trader said the weather was favourable at the moment for the trees.Vietnam exported 238,266 metric tons of coffee in January, up 67.4% from a year earlier and 14.8% from the previous month, customs data showed. Revenue reached $726.6 million, up 133.7% from January 2023.- Robusta coffee LRCc2 for May delivery settled up $31 or 1%, at $3,177 per metric ton as of Wednesday close.- Traders offered 5% black and broken-grade 2 robusta at a premium range of $300-$350 per ton to the May contract.- Premiums for Sumatran robusta beans in Indonesia's Lampung jumped from last week, traders said, as demand rose while farmers are still waiting for coffee cherry harvests. One trader offered $720 premium to the April contract, up from $550 on March contract last week. "This is because there is no more beans," the trader said.A small coffee harvest in Lampung province and the surrounding area in southern regions of Sumatra typically starts in March or April, and the main harvest usually starts around June.Another trader offered $640 premium to the May contract, up from $600 premium last week, noting that demand was strong this week.

Feb 16 - Vietnam prices edge down post holidays, Indonesia premiums rise (Reuters)

 - Vietnam coffee prices have softened but remain at higher levels amid tight supplies and lacklustre trade after a week-long Lunar New Year break, while premiums were higher in Indonesia also due to a shortage of beans, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 78,900-79,200 dong ($3.23-$3.24) per kg, down from 79,100-80,000 dong range pre-holiday."Some deals have been sealed on the very first daysof the Lunar New Year," said a trader based in the coffee belt."Most farmers are cultivating both coffee trees and fruit trees, especially durians. They prioritised selling durians first as fruits get easily spoiled, to cash in for holiday... hopefully they will release more coffee beans in the coming days."- Robusta coffee LRCc2 for May delivery settled down $73, at $3,090 per metric ton onWednesday.- Traders offered 5% black and broken-grade 2 robusta at a premium of $150-$200 per ton to the May contract.- In Indonesia, Sumatra robusta coffee beans were offered at a $550 premium to the March contract this week, up $10-$20 compared to two weeks ago. "The higher price was due to a lack of coffee beans and high price in the London terminal," one trader said. Another trader quoted a $600 premium to the May contract this week, citing the shortage of beans as one of the reasons for the high premium.

Feb 16 - Ivory Coast cocoa council says it will not default on contracts despite bean shortage (Reuters)

- Ivory Coast's Cocoa and Coffee Council will not default on its export contracts despite a drop in cocoa production since the start of the October-to-March main crop, CCC's managing director Yves Brahima Kone said on Thursday. His remarks followed reports that as traders are scrambling for beans, industry experts are predicting ever wider deficits this season and have growing concerns for the next. Last week, a Reuters cocoa poll forecast a global deficit of 375,000 tons in the 2023/24 season.

Bean supply is tight in the world's top producer of the commodity. Cocoa arrivals at ports were 33% lower between Oct. 1 and Feb. 11 compared to the same period last season.

Kone said in an interview on Thursday that the Cocoa and Coffee Council regulator would still meet all its commitments made to exporters last year.

He said the amount of beans available on cocoa plantations across the country would still be enough to meet export contracts despite a sharp drop in supply recorded since the start of the 2023-24 season.
"I can tell you that there are no and will be no defaults this year in Ivory Coast," Kone said.
"We have been cautious and have sold volumes we were able to produce this season, both for the main and mid crops, so we are calm and serene," he said.

- Several industry sources, including exporters, have said the April-to-September mid crop would be more or less in line with usual production patterns, which would compensate for low main crop output. Pod counters, exporters and analysts estimate mid crop production to sit between 450,000 and 500,000 tonnes.

- Kone said export contracts that could not be met with main crop harvests would be pushed back to the mid crop's harvest period, which has already happened in the past.
"We can see that the mid crop harvest is developing much better than we expected, and that's reassuring. We have sold less and have a good margin," he said.
"We are going to postpone any contracts that need to be postponed, but it's important to remember that we have sold just under 300,000 tonnes in mid crop contracts. This gives us some leeway in relation to production forecasts," he added.
"There is less cocoa available this year, but there is plenty for those who have contracts."

Feb 16 - Madagascar delaying the commercial vanilla season due to low prices

Madagascan vanilla prices are clearly down from the official production cost of $120-150/kg settled by the Madagascan government, which has halted the release of the commercial season.

The Madagascan government recently lifted the official export price of $250/kg, banning exports below the official production cost. However, these sources listed the following conventional FOB quotes:

    Production cost settled at $120-150/kg
    Cuts: $20-25/kg
    Red vanilla: $50-55/kg (20-25% dry)
    Black vanilla: $70-80/kg

EU maximum residue limit (MRL) requests are so high that many importers are not asking for organic as processors are not interested in it, matching prices between both.

Feb 15 - Global raw sugar prices expected to rise 20% this year

 Raw sugar prices are expected to post an annual gain of nearly 20% in 2024 as the global market shifts into a deficit in the upcoming season, a Reuters poll of 12 traders and analysts showed. Sugar is set to close the year at 24.5 cents per lb, up 5% versus the close on Tuesday and as much as 19% above levels at the end of last year, according to the poll's median forecast.

Feb 08 - High robusta coffee prices boost demand for arabica beans (Reuters)

 - The sharp price increase for robusta coffee, due mainly to poor crops in Asia, is leading roasters to change their blends towards using more lower quality arabicas to cut costs, according to a report by broker hEDGEpoint Global Markets.Prices for robusta increased 67% last year as a stagnant production in the top grower of that variety, Vietnam, and lower output in Indonesia means supply is not coping with demand. Robusta coffee is widely used to make instant coffee and in blends with lower quality arabicas. Fine arabicas are preferred by high-end coffee shops and single serve capsule producers.hEDGEpoint forecasts that there will be a deficit of 3.12 million bags of robusta coffee in the market in the 2023/24 season (Oct-Sept), saying the combined production from Vietnam and Indonesia will fall by between 3 and 4 million bags.As arabica prices rose less, the arbitrage (price difference) KC-LRC1=R between the futures of the two types of coffee fell to levels that boost demand for some types of arabicas, Carlos Costa, hEDGEpoint's global head of sales, said in the report."Apparently, with arbitrage at levels of around 40 cents per pound, we have seen demand migrate to arabicas," said Costa, adding that if the robusta supply situation worsens, the market could see the arbitrage fall close to a low of 28 cents per pound seen in June 2017.According to Cepea/Esalq, a research center at the University of Sao Paulo, prices for lower quality arabica in Brazil (Rio type) are currently around $166 per 60-kg bag, while robusta futures in London are trading at around $186 a bag.The analyst believes the robusta market will remain supported, since there is no expectation for an increase on Vietnam's production beyond 31 million bags, and Brazil's robusta (conilon) production, which has become an alternative to Vietnam's beans, is growing only slightly every year.

Feb 07 - Vietnam coffee farmers seek to renegotiate deals after global price surge (Reuters)

- Farmers in major coffee exporter Vietnam are refusing to deliver coffee they have sold unless contracts are renegotiated following a surge in global prices to a 28-year high. Vietnam is the world's largest supplier of robusta coffee and the standoff is adding impetus to a rally in robusta prices with supplies in Europe becoming very tight. The country had its poorest crop in six years in the 2022/23 season and some contracts were rolled forward into the 2023/24 season meaning a large crop was needed for farmers to fulfil all their commitments.

This season's harvest was, however, also sub-par. The poor crops drove prices much higher and farmers felt they could not afford to deliver at the agreed prices and have sought to renegotiate their contracts.
"I would not say we broke the contract. When prices went up, we renegotiated the prices with buyers. For now, we only release beans if buyers can match our quoted prices," said a Vietnamese farmer in Dak Lak, the main producing region, speaking on condition of anonymity.

The standoff, which initially impacted local Vietnamese dealers, has now filtering out into the wider market, tightening global supplies and helping push the benchmark world price index to its highest since 1995.

Traders estimate that the delivery of between 1-2 million bags of last season's pre-sold Vietnamese coffee - or up to 8.5% of the country's total exports - was delayed following the harvesting of a poor crop in the 2022/23 season. Although much of that coffee has since been delivered, it has left less coffee available for sale this season, exacerbating the price rally.

Two more farmers in Dak Lak, also speaking on condition of anonymity, said they were delivering pre-sold beans but they have had to renegotiate the price because of how much the spot market has rallied.

Traders who baulk at paying up are left short of supply of robusta, which is mainly used in instant coffee, espresso and blends of ground coffee. A Vietnam-based trader said in December and January, there were still some deliveries of pre-sold coffee, but he expects these will fall sharply in the months ahead as he now cannot even get hold of suppliers who owe him this low-priced coffee.

Even though they have written contracts, global traders say it is not worthwhile for them to sue local suppliers because of the expense involved.

Mentality Shift

- One Europe-based trader said he received just 20% of the Vietnamese coffee he was meant to get last November and December. The coffee was bought last August at a price some 20% below current local rates. Instead, he is trying to convince his suppliers to deliver a small portion of the low priced coffee in return for large volumes of orders for coffee priced at current spot rates.

- Those who agree still get a good average rate for their coffee, he explained, but added that the strategy only works if one has good relationships with relatively reliable suppliers.
"The mentality shift is huge, today even if you pay the spot (rate) you might not get as much (coffee) as you want," he said.

- All the traders Reuters spoke to declined to name their problem suppliers due to 'sensitive' talks currently underway with them. An industry expert said all global traders operating in Vietnam have been impacted by the situation. These include Louis Dreyfus, Sucafina, Volcafe and Neumann Kaffee Gruppe, who between them purchase most of the coffee Vietnam produces for export, and whose trading activities, because of their size, tend to impact world prices.
- Louis Dreyfus, Sucafina and Volcafe, a unit of ED&F Man, did not respond to requests by Reuters for comment.
- Neumann Kaffee Gruppe said it was 'too early to make an accurate statement' about the supply situation in Vietnam, because it is still unfolding.

- Vietnam, which produces more than a third of the world's robusta, harvested 26.3 million bags of coffee last season - a six-year low - with the current season seen at 26.6 million, U.S. Department of Agriculture data shows.

- Given the dwindling supplies, many market participants have been turning to the ICE Futures Europe exchange for coffee, driving stocks down. ICE-certified robusta stocks are currently at 10-year lows, according to data from a second Europe-based trader. Falling ICE stocks are visible to the entire market so tend to drive benchmark ICE futures prices higher.
"There's a likelihood this robusta story will persist until the new (robusta) crop (from Brazil is harvested). Even then I'm not convinced it's over," said a trader, referring to possible relief some time around mid-2024.

Feb 02 -Vietnam prices edge up amid tepid activity ahead of holiday (Reuters)

- Vietnam coffee prices edged up this week as trade remained sluggish ahead of the week-long Lunar New Year holiday starting next Thursday, while prices were slightly lower in Indonesia due to a shortage of beans, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 79,100-80,000 dong ($3.24-$3.28) per kg, compared to 73,000-75,000 dong last week.
"Although prices are reaching a new high, trade is limited as some already are under holiday sentiment and dwindling down activities," said a trader based in coffee belt.
"In addition, prices are too high for many buyers now."

- Robusta coffee LRCc2 for May delivery was trading at $3,173 per metric ton as of 0943 GMT on Thursday.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $160 per ton to the May contract.
Vietnam exported 96,000 tons of coffee in the first two weeks of January, up 4.2% from a year earlier, government data released on Monday showed. Coffee export revenue in the period rose 40% to $283 million.

- Indonesia's Sumatra exported 4,705.59 tons of robusta coffee bean inDecember, data from local trade office showed, down 91% from the same month last year. Sumatra beans were offered at a $480-$490 premium to the March contract this week. The prices were $500-$520 premiums to the February contract.
"The slightly lower price was due to a lack of coffee supply," the trader said, adding price was also adjusting to London terminal.

Jan 25 - Vietnam domestic prices, Indonesia premium rise on thin supplies (Reuters)

- Vietnamese coffee prices extended gains on Thursday on concerns about thin supplies, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 73,000-75,000 dong ($2.97-$3.05) per kg, up from 71,000-72,900 dong last week.
"Prices have edged higher as farmers refrain from selling their beans to traders on anticipation of higher prices due to the Red Sea tensions and low London inventories," said a trader based in the coffee belt.
"Many exporters are finding it hard to secure enough coffee to fulfil their signed contracts."
Another trader said farmers are still holding around 70% of the beans harvested in the 2023-24 crop.

- March robusta futures on Wednesday settled $25, or 0.8%, higher at $3,207 a ton, after peaking at $3,254 earlier - the highest since the current form of the contract started trading in January 2008.

- In Indonesia, Sumatra robusta coffee premium widened this week, also on thin supplies.
Sumatra robusta bean is offered at a $500-520 premium for the February-March contract this week, compared with last week's premium of $500.
A trader said the premium widened to $500 this week from $450 last week, adding that the trend "will continue for a while, at least until the expected main harvest in April and June."

Jan 19 - Domestic prices in Vietnam rise further on supplies concern (Reuters)

- Vietnamese coffee prices extended gains this week as farmers refused to sell beans in hopes of better prices amid shipping disruptions, while Indonesian premiums fell, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 71,000-72,900 dong ($2.89-$2.97) per kg, compared to 69,800-72,000 dong last week.
"Prices keep making new peaks as supplies are very scarce now. Buying beans is a competition now," said a trader based in the coffee belt.
"The situation is not positive at all... Many (traders) have already been late for their deliveries of their signed contracts as they failed to secure beans."

- March robusta coffee LRCc2 has gained $218 in a week, at $3,156 per ton as of Wednesday.
"Inventories on the London exchange hit record low as a result of bean shortage in Vietnam, pushing the prices up," the second trader said.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $20-$25 per metric ton to the May contract.

- In Indonesia, Sumatra robusta coffee beans were offered at $500 premium to the February-March contract this week, $50 below last week's premium.
"The price is adjusting to the London terminal," one trader said.
Another trader quoted a $450 premium this week to the March contract.

Jan 16 - Brazil's coffee exports nearly flat in 2023 - industry group
Brazil's green coffee exports ended 2023 nearly flat from the previous year, as vigorous growth in shipments of the robusta variety and China's increasing appetite for the beverage partially offset logistical hurdles, exporters association Cecafe said on Monday. Farmers exported a total of 35.53 million 60-kg bags of green coffee last year, 0.3% below the figure from 2022, Cecafe said.

Jan 12 - Domestic prices in Vietnam jump on tight supplies, shipment disruptions (Reuters)

-Vietnamese coffee prices rose this week tracking higher prices in London due to limited stocks, as farmers held off from selling amid shipping disruptions due to tensions in the Red Sea, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 69,800-72,000 dong ($2.85-$2.94) per kg, up from last week's 67,000-67,900 dong.
"It is very hard to buy (beans) now although all are rushing to buy," said a trader based in the coffee belt.
"Prices are climbing up every day and the disruption will not be solved anytime soon. Farmers are selling, but not in bulk."

- March robusta coffee LRCc2 has gained $164 in a week, at $2,950 per ton as of Wednesday, due to the conflict in the Red Sea which has disrupted shipping routes for the past weeks.
- Another trader said some were speculating beans, causing a more severe scarcity of beans on the market.
"Roasters in EU now have to pay the additional freight caused by this unexpected event while exporters here find it hard to ship beans to EU," the second trader added.

- Traders offered 5% black and broken-grade 2 robusta at a premium range of $70-$100 per ton to the March contract.
Vietnam exported 1.6 million metric tons of coffee in 2023, down 8.7% from 2022, government customs data showed. Export revenue for the period, however, rose 4.6% to $4.2 billion.

- In Indonesia, Sumatra coffee beans premiums fell to $550-$600 to the January-February contract, from last week's $600 premium.

 

Jan 10 - Indian coffee exports set to surge thanks to global price rally
India's coffee exports are likely to rise as much as 10% in 2024 as a rally in global prices prompts European buyers to pay premiums in order to increase purchases from the country, industry officials told Reuters. The South Asian country - famous as a tea producer - is also the world's eighth-largest coffee grower, mainly churning out the robusta beans used to make instant coffee.

 

Jan 05 - Chocolate suppliers accused of sourcing cocoa from Nigeria's protected forests - DJ/AP

- The European Union, the largest market for cocoa from West Africa, will begin implementing its new regulation this year on deforestation-free products that require companies selling commodities, including cocoa, to prove they have not caused deforestation – and while the spotlight has focussed on issues related to farming in Cote d’Ivoire and Ghana, it has emerged that neighbouring Nigeria also has a problem. According to World Bank trade data and Nigeria’s export council, more than 60% of Nigeria’s cocoa heads to Europe and approximately 8% to the United States and Canada. Experts at the Cocoa Research Institute of Nigeria said they are launching a ‘Trace Project’ in six southern states to advance compliance against deforestation in cocoa production and ensure the country’s cocoa is not rejected in Europe.

- But in a significant investigation by the Associated Press (AP), Rasheed Adedeji, who leads the institute’s research outreach, said: “From the preliminary data collected, major exporters are implicated in deforestation, and it is their responsibility to ensure compliance with standards .”
AP reporters said they have repeatedly documented farmers harvesting cocoa beans where that work is banned in conservation areas of Omo Forest Reserve, a protected tropical rainforest 135 kilometres (84 miles) northeast of the coastal city of Lagos in southwestern Nigeria.

- Cocoa from the conservation zone is purchased by some of the world’s largest cocoa traders, according to AP, including Singapore-based food supplier ofi (Olam Group) and Nigeria’s Starlink Global and Ideal Limited, along with Tulip Cocoa Processing Ltd, a subsidiary of Dutch cocoa trader and producer Theobroma.
“Those companies supply Nigerian cocoa to some of the world’s largest chocolate manufacturers, including Mars Inc. and Ferrero, but because the chocolate supply chain is so complex and opaque, it’s not clear if cocoa from deforested parts of Omo Forest Reserve makes it into the sweets that they make, such as Snickers, M&Ms, Butterfinger and Nutella. Mars and Ferrero list farming sources on their websites that are close to or overlap with the forest but do not provide specific locations ,” the AP report stated.

- Ofi said that it “forbids ” members of its ‘Ore Agbe Ijebu’ farmer group from “sourcing from protected areas and important natural ecosystems like forests .” AP said the Ijebu farmer group is listed as a sustainable supplier on Olam’s website and is said to be in Ijebu Ife, a community near the reserve. Ferrero, Mars, and Tulip have issued statements that they’re committed to their anti-deforestation policies, use GPS mapping of farms, and that their suppliers are certified through independent standards.

Jan 05 - Czarnikow expects small global sugar surplus helped by Brazil weather
Czarnikow on Thursday forecast a small global sugar surplus of 1.6 million metric tons for the current 2023/24 season due to favourable weather in top producer Brazil and rains in the latter half of the season in Thailand. The trader and supply chain services company expects sugar production will total 179.7 million tons in 2023/24, up 1.3 million tons from its December forecast.

Jan 04 - ASIA COFFEE-Vietnam trading slows post holidays, Indonesia flat

- Major Asian coffee markets saw little activity amid low demand for Vietnamese robusta beans this week, traders said on Thursday, while Indonesian premiums were unchanged on limited stockpiles. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 67,000-67,900 dong ($2.75-$2.79) per kg, slightly narrowing from last week's 67,000-68,500 dong.
"Demand from international buyer is not high, buyers are mostly local roasters now," said a trader based in the coffee belt.
"Farmers are releasing beans bit by bit, not in bulk. They only sell beans when they need money," the trader added.

- March robusta coffee has fallen $86 this week since resuming trade after the New Year holidays, having closed at $2,755 per metric ton on Wednesday.

- Traders offered 5% black and broken-grade 2 robusta at a premium range of $70-$100 per ton to the March contract, compared with last week's $20-$40 premiums. Coffee exports from Vietnam are estimated to have fallen 9.6% in 2023 from a year earlier to 1.6 million tons, government data showed, although export revenue rose 3.1% to $4.2 billion.

- Meanwhile, Indonesia exported 12,962.36 tons of robusta beans from Sumatra in November, official data showed, down 77.5% from the same month last year. Shipments also edged lower on a monthly basis. In Lampung province, robusta beans were offered at around $600 premium to February to March contracts, similar to the January to February contracts offered last week, one trader said.
"There is virtually no more beans so the premium is not coming down just yet," the trader said.

Robusta coffee harvest in the southern region of Sumatra typically gradually starts from around March to April. A farmer in Western Lampung district said coffee cherries are currently "the size of a crab's eyes".