Cafés, Cacao, Azúcares, Caucho y especias

Sep 20 - Trader Wilmar cuts its estimate for Brazil sugar output
Singapore-based commodities trader Wilmar cut its projection for Brazil's centre-south sugar production to a range between 38.8 million and 40.8 million metric tons on Thursday from its initial estimate of 42 million tons. Wilmar said it had revised its projection due to the drought and farmland fires that have hurt production in Brazil.

Sep 19 - Coffee growers look to postpone EU deforestation requirementThe world's top coffee body is set to request that the European Union postpone a requirement that imported beans come from areas not linked with deforestation, the group's head said on Wednesday. The rule, set to take effect at the end of the year, would ban sales of coffee - as well as cocoa, soy, palm oil, wood, rubber and cattle - if companies are unable to prove the product comes from an area where forests haven't been cut down in recent years.

Sep 18 - Costa Rica sees 2024/25 coffee harvest up nearly 6%
Costa Rica's 2024/25 coffee harvest should produce some 1.70 million bushels of coffee, an expert from the Central American country's ICAFE coffee institute said on Tuesday, up 5.6% from 1.61 million bushels a year ago after a difficult past year. Coffee typically produces higher yields in alternating years, and last season's harvest was down 16% from the previous period due to unusual weather and a limited workforce available to pick the coffee, also bringing exports down 6.5%.

Sep 17 - Ghana lost 160,000 tons of cocoa to smuggling in 2023/24 season, Cocobod official says
Ghana has lost more than a third of its 2023/24 cocoa output to smuggling, a top official from the cocoa marketing board (Cocobod) told Reuters, as low local prices and payment delays push some farmers to sell to increasingly sophisticated trafficking rings. Poor harvests in Ghana and Ivory Coast, the world's second largest and largest producers, have pushed markets into a four-year supply deficit, driving up global cocoa and chocolate prices this year.

Sep 13 - Global cocoa stocks drop to 50-year low, 2024/25 output seen recovering - ICCO
The global cocoa stocks-to-grinding ratio has dropped to its lowest in almost 50 years amid a steep decline in output which has boosted prices to all-time highs this year, but production could recover from next month, a senior industry official said on Thursday. World cocoa stocks tumbled to 1.32 million metric tons in July, from 1.79 million tons in September last year, said Michel Arrion, executive director of the International Cocoa Organization (ICCO).

Sep 12 - Prices edge up slightly in Vietnam, crops unharmed after typhoon Yagi (Reuters)

Vietnam's domestic coffee prices rose slightly on Thursday from a week earlier, with the Central Highland coffee crops unharmed in the aftermath of typhoon Yagi, while trading is expected to remain subdued until the harvest season next month. Farmers in the Central Highlands, Vietnam's largest coffee-growing area, sold beans for 121,000-121,500 dong ($4.93-$4.95) per kg, compared with 119,000-120,500 dong a week ago.

Robusta coffee for November delivery settled up $111, or 2%, at $5,008 per metric ton, as of Wednesday's close.

Typhoon Yagi, Asia's most powerful storm this year, made landfall in northern Vietnam last weekend and created huge damage, but coffee trees in the Central Highlands were unharmed.
"London prices have gained significantly since the beginning of this week, partly due to news on typhoon Yagi and data from Vietnamese authorities on lower coffee exports," a trader based in the coffee belt said.
"The weather in the coffee belt remains favourable for the trees."
Another trader said farmers had started to prepare for the harvest, which begins next month, while some traders also started seeking new beans.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $50 per ton to the November contract, and a discount of $30-$50 per ton to the January contract.
Vietnam's coffee exports in the first eight months of this year were 1.056 million tons, down 12.1% from a year earlier, customs data showed.

- In Indonesia, Sumatra robusta coffee beans were offered at a $280 premium to the November contract, up from the $220 premium last week to the September-October contracts.
"It was because of lower coffee supplies," one trader said. Another trader quoted beans at a $130 premium to the November contract, a drop from last week's $200 premium as "an adjustment to the prices on the London terminal".

Sep 06 - Ghana begins pilot program to trace cocoa as EU deforestation law looms, official says
Ghana is piloting a system that traces cocoa beans from farm to port as it gears up for a new EU law banning the import of commodities linked to deforestation, a government official said on Thursday. The landmark new law, which could in time reshape global commodity markets, comes into effect end of December.

Sep 06 - Vietnam prices flat amid lacklustre trade until next harvest (Reuters)

- Vietnam's domestic coffee prices were little changed on Thursday from a week earlier, with trading expected to remain subdued until the next harvest in October, traders said.
Farmers in the central highlands, Vietnam's largest coffee-growing area, sold beans for 65,000-66,000 dong ($2.70-$2.74) per kg, slightly up from last week's 64,900-66,000 dong.
"Stocks are also running out. We are in the last month of the crop season so trade is muted," said a trader based in the coffee belt. "Beans are likely to come from November if everything goes well."

- November robusta coffee settled up $3, at $2,456, as of Wednesday's close, while the January contract settled down $7 at $2,360.

- Traders in Vietnam offered 5% black and broken-grade 2 robusta at a discount of $30-$70 per tonne to the January contract.

- Meanwhile, Indonesian Sumatra robusta coffee beans were offered at a $500 premium to the November contract this week, unchanged from a week ago.
"The harvest is done now. Coffee supplies are very limited," one trader said. Another trader quoted beans at a $500-$520 premium this week to the October contract, the same as last week.

Aug 26 - Ghana's Cocobod to ask traders to pre-finance bean purchases in new funding model
Ghana's cocoa marketing board, Cocobod, is fine-tuning a new funding model for bean purchases that will require global traders to deposit at least 60% of the value of their forward contracts at the start of the season, two sources told Reuters. The new system will replace a three-decade old pre-export syndicated loan from international banks, which Cocobod said this week it would not raise for its 2024/25 cocoa season for the first time since 1992.

Aug 15 - Frosts hit coffee areas in Brazil
Brazil‘s coffee fields have faced the biggest cold front of the year in recent days, causing frosts in some regions, especially in the Cerrado Mineiro and Alta Mogiana. However, the overall impact was less severe compared with 2021, when frosts impacted 60% of the coffee production, according to a local farmer.

The Brazilian trader Bourbon Speciality Coffees observed that “some plants in Cerrado were damaged, especially in the higher part, but the damage was low, with a maximum estimate of 5% loss in the affected areas. Although yields may be slightly impacted, the situation is not serious.”

Coffee futures were immediately impacted by this adversity, with the September arabica contract increasing by 2.9% on the day to $2.4085 per pound on 12 August. Similarly, robusta coffee rose by 4.8% to $4,532 per metric ton.

According to a local industry source, the coffee harvest in Brazil is almost complete and the harvesting of beans that have fallen from the ground is set to begin. He explained that the dry climate during this process is important to prevent the grains from rotting on the ground. Although drought is beneficial to this process, any delay in the arrival of spring rains can cause concern in the market as it may affect the flowering of the coffee plants.

Aug 12 - Light frosts reported in some Brazil coffee areas
Farmers and local media reported the occurrence of light frosts in coffee producing areas in Brazil in the early hours of Sunday as an unusually strong cold mass for this time of the year advances from the South to central areas in the country. Farmers posted videos on social media of light frosts in the Cerrado Mineiro region, the second most important producing region of top Brazilian coffee grower Minas Gerais. There were no reports of frosts in the main coffee area of South Minas.

Aug 09 - Asia Coffee-Vietnam domestic prices rebound; supplies tighten in Indonesia (Reuters)

- Higher demand from global buyers and lack of domestic supply pushed up prices in Vietnam this week, while supply in Indonesia is expected to dip as the harvest there draws to a close.
Farmers in the Central Highlands, Vietnam's largest coffee growing area, sold coffee at 35,000 dong ($1.51) per kg , slightly up from 34,600 dong a week earlier.
"Prices have bounced back in the past two weeks as demand remains high while stocks at farmers' warehouses have almost run out," a trader based in the province of Dak Lak said. "But I don't see any factors that can push the prices higher."

During the past two days, heavy rains have hit several parts of the Central Highlands and are expected to continue for the next few days, the National Meteorological and Hydrological Center said on Thursday. No crop damages have been reported. Traders said up to now, the weather had been favourable for baby cherries to grow well.

The next harvest season in Vietnam will start in October.
Traders in Vietnam offered the 5% black and broken grade 2 robusta at a $200 premium per tonne to the September contract, widening from $140 of last week.

The International Coffee Organization on Wednesday raised its forecast for global coffee production in 2018/19 to 168.77 million 60-kg bags from the previously expected of 167.75 million.
Meanwhile, Indonesian robusta beans were offered with $170-$200 premium to November contract, traders in Sumatra's Lampung province said. That compared to a range of $150-$200 premium to September contract last week.

Aug 08 - Asia Coffee Market Quiet in Vietnam on Bean Scarcity, Indonesia Premiums Down (Reuters)

- Coffee trading activities in Vietnam remained tepid at the end of the crop season due to a shortage of beans and high prices, while Indonesian premiums for November deliveries edged down significantly on abundant supplies, traders said on Thursday. Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans for 122,000-123,000 dong ($4.85-$4.89), lower than 123,000-123,500 dong a week ago.
"No one is willing to buy at that high price. Those who are desperate for beans can turn to Indonesia instead," a trader based in the coffee belt said.
"It is 2-3 months until the new harvest, activities will be better by then."

- Robusta coffee for November delivery settled up $96 at $4,286 per metric ton as of Wednesday's close.
"European importers are aware of the scarcity in Vietnam, although their demands have shown signs of recovery, they are not buying from Vietnam. Therefore, export activities will stay this lacklustre until the new harvest," the Mercantile Exchange of Vietnam said in a note earlier this week.

 In Indonesia, Sumatra robusta coffee beans were offered at $320 premium to the September contract, lower than last week's $470 premium, as "local supply is abundant from the main harvest season", one trader based in the region said. Another trader quoted $50 premium to the November contract, a huge drop from $403 premium last week.
($1 = 25,143 dong)

Jul 18 - Trade remains quiet in Vietnam, supplies build up in Indonesia (Reuters)-Trading activity in Vietnam remained sluggish amid low supplies and high asking prices, while premiums fell in Indonesia as supplies are building up there, traders said on Thursday.Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans for 127,000-127,700 dong ($5.00-$5.02) per kg, unchanged from last week."It is four months away until the next harvest however there is not much coffee left," said a trader based in the coffee belt. "Trade is very tepid as no one is keen to buy at this high price."Traders offered 5% black and broken-grade 2 robusta at a premium of $500 per metric ton to the September contract."At the moment, I don't think domestic prices can surpass the 135,000 dong per kg mark. Sluggish coffee trading activities remain an obstacle," said Nguyen Ngoc Quynh, deputy chief of Mercantile Exchange of Vietnam.Indonesia's Sumatra robusta coffee beans were offered at $600 premium to the September contract this week, lower than the $750 premium to the August contract last week, a trader said. Another trader quoted a premium of $630 to the September contract, down from $770 a week ago, "as supply has improved"."There is a lot of coffee in the market thanks to ongoing harvest in the main producing areas in Lampung. The harvest is estimated to peak in July to August," the second trader added.Asep, a coffee farmer in Indonesia's Lampung province, said his coffee output rose to one ton per hectare this year, far above 200 kilograms last year as the weather was favourable.

Jul 12 - International coffee prices swelled roughly 20% last quarter amid extreme heat in major Asian coffee-growing regions, joining weather-driven rallies in such other commodities as rubber and natural gas.

Benchmark London robusta coffee futures were 18.1% higher at the end of June than at the end of March and hit an all-time high of $4,394 per tonne on June 6. Arabica coffee futures were up 20.6%.

The jump came even as the FTSE/CoreCommodity CRB Index, an international indicator for the wider commodity market, hovered around 290 at the end of June -- roughly flat compared with the end of March. Crude oil futures, a major component of the index, fell about 1% to 2% during that period.

Heat waves in Southeast Asia are the chief cause of the spike in coffee prices. Since April, average temperatures in Vietnam, Thailand and the Philippines have been hotter than normal, running as high as 48 C.

Vietnam produces roughly 40% of the world's robusta coffee beans, which are used for instant coffee. But its coffee farmers face a severe drought. The dry spell has sparked concerns that the fall harvest will be impacted.
"The previous year's harvest of the robusta variety was poor, so prices have risen on concerns of a second consecutive year of lean harvests that would prolong the tight supply-demand balance," said Masanobu Takano, who works in coffee and tea at Kobe-based trading house S. Ishimitsu & Co.

The heat in Southeast Asia has also affected prices of natural rubber, a major export of Thailand and Indonesia. Rubber futures on the Osaka Exchange, an international benchmark, rose to 360.90 yen ($2.23) per kilogram on June 10, their highest point since mid-March.

Rubber production tends to slow down between March and May on reduced supply of the natural latex fluid it is made from. After this, supply usually increases, bringing prices down.

Jul 10 - Robusta coffee prices hit record high due to supply shortage (Reuters)

- Robusta coffee prices surged to a record high on Tuesday with the global market tightened by a slowdown in shipments from top producer Vietnam. The price of robusta beans has risen 63% this year, peaking on Tuesday at $4,667 a metric ton on the London-based ICE Futures Europe market. The market has been rising for about 18 months as global producers such as Vietnam struggle to keep pace with steadily rising demand. Prices climbed by 58% in 2023.

Demand for robusta has been growing as roasters switch out of arabica into the cheaper bean. Robusta is typically used to make instant coffee but it has also been increasingly added to roast coffee blends dominated by arabica.

Vietnam's coffee exports in June were just 70,202 tons, taking the cumulative total for the first half of this year to 893,820 tons, down 11.4% from a year earlier, customs data showed on Tuesday.
"This lower export performance for Vietnam during the month of June continues to reflect the tight internal market conditions within this largest robusta-producing nation," coffee trader I & M Smith said in a daily update. Coffee production in Vietnam almost tripled during the first two decades of this century, peaking at 31.58 million 60-kg bags in the 2021/22 season, according to U.S. Department of Agriculture data. The last couple of seasons, however, have produced smaller crops with the most recent harvest estimated by the USDA at 29 million bags. A further decline is widely forecast for the upcoming 2024/25 season.

Jul 09 - Demand for coffee has continued to grow globally despite rising prices (ICO-Reuters)

The International Coffee Organization this month estimated a rise of 2.2% in global coffee consumption in the 2023/24 season.
Trader I & M Smith said on Tuesday that many independent forecasts saw demand continuing to grow in 2024/25, albeit at a slightly slower pace of 1.25%.
"This growth is primarily driven by relatively new coffee consumer markets and producer countries such as China, India, Indonesia, the Middle East and Vietnam who have registered increased internal coffee consumption," the trader said.

The challenges faced by Vietnamese robusta producers have created an opportunity for Brazil, which grows mostly arabica beans but has been expanding production of robusta, a variety more resistant to dry weather.
"Brazil now is planting a lot and probably in a couple of years will became the most important country as regarding the production of robusta, more important than Vietnam," Giuseppe Lavazza, chairman of coffee company Lavazza told Reuters.

Brazil produced around 21.5 million bags of robusta coffee last year, a near record, and is harvesting what is expected by most analysts to be a larger crop, despite some early complaints by farmers about yields.
"I know that with these kind of prices they (Brazilian farmers) are running like crazy to produce more and more robusta," Lavazza said.