Softs News

May 14 - Brazil's coffee exports jump 61% in April ( CECAFE )
Brazil's total exports of green coffee leaped nearly 61% year-over-year in April, rising to 3.90 million 60-kg bags, industry group Cecafe said on Monday. Shipments of arabica coffee, which account for most of the country's exports, grew 40.1% from the year-ago month to 3.22 million bags.

May 13 - Sugar market equilibrium masks significant supply risks
The global sugar market faces supply risks, such as a lack of rain and port congestion in top exporter Brazil, that may wreck the current equilibrium with low stocks reducing its resilience. The New York Sugar Week, an annual gathering of the sugar industry, where a series of seminars and an industry dinner attract participants from around the globe, took place this week against the backdrop of balanced supply and demand conditions.

May 10 - Ivory Coast suspends sales of raw cashews to exporters (Reuters)
Ivory Coast has suspended exporters' purchases and exports of raw cashew nuts to allow local processors to supply their factories, according to an agriculture ministry memo dated May 7 and seen by Reuters. Ivory Coast, the world's largest cocoa producer, has also become a leading grower of cashew nuts in recent years, but only a fraction of its nuts are processed locally as firms face steep competition from deeper-pocketed Asian exporters.

- Domestic coffee prices in Vietnam fell sharply this week following a dive in global prices, traders said on Thursday. Farmers in the Central Highlands, Vietnam's largest coffee-growing area, were selling beans for 94,000-97,000 dong ($3.74-$3.81) per kg, a sharp decrease from last week's 132,500-133,200 dong range.

Robusta coffee for July delivery shed 7.2% against last week, at $3,414 per metric ton on Wednesday.
"Prices have fallen significantly since late last week, following a deep decrease on London terminal as long-holders liquidated their positions," said a trader based in the coffee belt.

Coffee trees in Vietnam are bearing baby fruits, but traders said it's too early to have an accurate forecast on the 2024/25 output.
"Rains have picked up in the region in the past days but we still have to wait until the end of this month to have a picture of the next crop," the trader said.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $500-$600 per ton to the July contract, falling from around $1,000 premium recently.

The Indonesian market is closed on Thursday on a public holiday.

May 08 - Dreyfus projects small global sugar supply, sees Brazil crop uncertain
The global sugar market will have a small surplus in 2024/25 at 800,000 metric tons versus a surplus of 2.5 million tons in 2023/24, commodities trader Louis Dreyfus said on Tuesday, adding the outlook for Brazil was still uncertain. Higher production in Thailand and Europe due to increased planting of cane and beet will be partly offset in 2024/25 (October-September) by falling output in India if the Indian government keeps its ethanol program as planned, said Dreyfus' head of sugar Enrico Biancheri in a presentation during New York Sugar Week.

May 07 - Coffee prices soar as Vietnam farmers switch to durian (Reuters)
- International prices for robusta coffee have reached new highs on unfavorable weather, increased consumption in Asia and the popularity of durian fruit in China.
"Things are hard with coffee beans and eggs becoming more expensive," said Nguyen Huong Giang at Cafe Giang, located in the old quarter of Vietnam's capital, Hanoi.

Founded in 1946, the cafe is known as the birthplace of egg coffee, a local specialty made with robusta coffee and whipped eggs. Rising costs have put significant strain on its finances.
Even so, the cafe says it will not change the price of 35,000 dong ($1.38) per cup, about half the price of a cup at Starbucks, many of which have sprouted around town.
"We can't raise prices easily when we think about regulars who have been coming since the time of my grandfather," who founded the cafe, Giang said. The cafe now also offers baked goods and whole coffee beans to cope with the financial strain.

Robusta futures in London hit a new high in late April, topping $4,500 per tonne. Though the market has cooled since, prices remain far higher than at the end of last year.
Vietnam ranks as the world's second-largest producer of coffee beans and the largest robusta producer. But many farmers in the country are shifting instead to durian, a fruit known for its thorny appearance, sweet taste and pungent odor.

Nicknamed "the king of fruits," durian has become very popular in China in recent years. Vietnamese exports to China surpassed $2 billion in 2023, more than five times the previous year, according to local reports. Further growth is expected this year. The shift to durian has reduced the area available to cultivate coffee plants, bringing down supply. Coffee grows best in the tropics, and a growing push against deforestation has made it increasingly difficult to find new land for growing the crop. This trend comes amid a greater supply crunch stemming from the El Nino weather phenomenon, which has caused drought in Southeast Asia.

Vietnam's coffee production totaled 29.2 million 60-kilogram bags between October 2022 and September 2023, down 9.8% year-on-year, the International Coffee Organization reports.
"It's too hot and there isn't enough water, so the coffee is not growing well," said Ngoc, a bean seller in southern Vietnam's Ho Chi Minh City. She has a contract with a farm in the inland Dak Nong province, but said the plants there are withering due to a prolonged drought.

Another factor is that major European and U.S. companies are shifting away from the high-end Arabica variety, mostly produced in Central and South America, to the relatively inexpensive robusta in response to rising transportation and fuel costs, Japanese trading house Marubeni said. Structural factors like rising consumption in Southeast Asia and China contribute as well. From October 2022 to September 2023, consumption in the Asia-Pacific region totaled 44.5 million bags, more than one-quarter of the world's total and up 12% over the prior four years. Global consumption as a whole grew by just 1% during the period.

In Vietnam, it has become a common sight for men and women of all ages to sit and chat over coffee on the sidewalk. Though the country is said to have started growing coffee during the French colonial period in the 19th century, the drink only began gaining popularity in the 1980s. Demand has since grown as Vietnam's economy developed.
Consumption in Southeast Asia's coffee-producing countries used to be largely of low-grade beans not suited for export. But with the proliferation of Starbucks and other coffee shops, local demand for high-quality beans is growing.

May 03 - Costa Rica coffee exports rise 18% in April (ICAFE)Costa Rican coffee exports rose 18% in April from a year earlier, data released from national coffee institute ICAFE showed on Thursday, despite weak international demand and logistical disruptions in the first quarter. April shipments totaled 138,323 60-kg bags, according to ICAFE, 21,121 more than in the same month in 2023.

May 02 - Indian sugar mills end season with higher than expected output
India's sugar production has been higher than expected this year after the completion of cane crushing at most of its mills, industry officials said on Wednesday, with a late pick-up in rains raising output. With the majority of India's sugar mills having now completed crushing for the 2023/24 season, output so far stands at 31.59 million metric tons, according to the National Federation of Cooperative Sugar Factories Ltd (NFCSF).

May 02 - Ivory Coast, Ghana unable to deliver up to 500,000 tons of pre-sold cocoa beans
Top cocoa producers Ivory Coast and Ghana, in the midst of one of their worst harvests in decades, do not have beans available to fulfil deliveries of up to half a million tons pre-sold at about a quarter of current world prices, two industry sources told Reuters. The beans make up about 20% of the countries' joint output and the aim now is to deliver them next season to the buyers instead of during the current season, the sources said.

May 01 - ICE May raw sugar delivery hits 1.67 mln tns, 4th largest on record
Deliveries of raw sugar on the expiry of the May contract on ICE exchange were seen at 32,914 lots, or around 1.67 million metric tons, the fourth largest on record, according to preliminary information from three sugar traders on Tuesday. Singapore-based commodities trader Wilmar International was said to be the largest deliverer of the sugar with 29,727 lots, or around 1.51 million tons. Commodities trader Louis Dreyfus was said to be the main receiver with 19,127 lots, or around 971,000 tons, the traders said.

Apr 29 - Vietnam coffee farmers boost irrigation but running low on water, says report (Reuters)
- Coffee farmers in Vietnam, the world's largest producer of robusta coffee, have sharply increased use of irrigation in the main producing regions of the country amid excessive dryness, but they are now running low on water, a report said on Monday. So far this season, many farmers have used irrigation as much as seven times already, compared with five times usually in a normal season, and they are seeing the need to irrigate coffee trees for an eighth time if they have water, said J.Ganes Consulting LLC in notes from a crop tour in Vietnam.

"The severe water deficiency and extreme temperatures have caused nutrient imbalances for the trees," said soft commodities analyst Judith Ganes, president of J.Ganes Consulting, adding that wells used by the farmers to get water for irrigation are running low.
The report says that the hot and dry environment has favored the spread of pests such as cochinilla in some farms. That insect can hurt flowers and small fruits in the trees, leading to lower agricultural yields.

- An intense heatwave is sweeping through Southeast Asia, and maximum temperatures measured in several parts of northern and central Vietnam ranged from 40.2 to 44.0 degrees Celsius (104-111°F), the country's national weather agency said on Sunday, adding that temperatures will not subside until Wednesday. Vietnam's weather was the latest factor behind record high prices for robusta coffee . The market was already hot due to below-average production for Vietnam and Indonesia in the last crop, and now the climate conditions have not been favorable for the development of the new crop.
"The incidence of cochinilla in Gia Lai is extensive and not yet under control. The speed at which cochinilla can spread is very fast and so this situation is very concerning," said the report regarding one of the main coffee producing regions in Vietnam. Ganes said there is forecast for rains coming in May, which could relieve the dryness.

Apr 25 - Premiums hit Record high in Vietnam on Supply Concerns (Reuters)
- Premiums surpassed the $1,000-level for the first time in Vietnam this week amid concerns over the next crop's supply due to irrigation water shortage, while Indonesia was expecting coffee beans to be harvested in June, traders said on Thursday. Farmers in the central highlands, Vietnam's largest coffee-growing area, were selling beans for 128,200- 129,500 dong ($5.06-$5.11) per kg. The price range was 105,000-105,900 dong two weeks ago.

- Traders offered 5% black and broken-grade 2 robusta at a premium of $1,105-$1,100 per metric ton to the July contract.
"Buying interest from international roasters and trade houses are still great but none seems willing to pay the current exorbitant prices," Ho Chi Minh City-based Tuan Loc Commodities said in a note earlier this week.
"However, farmers and long middlemen are unfazed, having fewer coffee stocks to sell and being buoyed by recent gains," it added.

According to a trader based in the coffee belt, weather conditions remained unfavourable - hot and dry that may hurt upcoming crop supplies.

Robusta coffee for May delivery settled up $149, or 4%, at $4,266 per metric ton on Wednesday.

- In Indonesia's Lampung province on Sumatra island, one trader offered robusta beans at a $600 premium to the May contract, up from $550 last week, amid concerns of delayed harvest.
"Beans availability is still limited, and harvest may start in June," the trader said.

Another trader offered a $500-$560 premium to the July contract, down from a $620 premium a week earlier.

Apr 25 - First full-size sugar vessel reaches Baltimore Refinery after accident
A full-size vessel carrying raw sugar was able to navigate through the 20-foot deep temporary channel at the U.S. Patapsco River on Wednesday and reach the Port of Baltimore for the first time since an accident blocked access to the port almost a month ago. The vessel The Jonathan carried supplies for the large sugar refinery operated by the ASR Group - the company that makes Domino Sugar - located at Port of Baltimore.

Apr 25 - INC’s 2023-24 production estimate: 5.5 million metric tons, 11% more y/y

The International Nut and Dried Fruit Council (INC) has forecast that the world raw cashew nut production might increase by 11% year-on-year to 5.5 million metric tons, with Ivory Coast (1.3 million metric tons, +5% y/y), India (740,000 metric tons, +25% y/y) and Cambodia (680,000 metric tons, +1.5% y/y), co-leading the supply.

High temperatures have been delaying harvests and damaging trees in March in West Africa. Vietnam’s crop has fallen by 11% y/y to 400,000 metric tons although exports of processed cashews are growing, fed by West African and Cambodian supply. Currently, the US and European demand is at highs as their inventories are at lows, although both markets might slow purchases once stocks are replenished.

Meanwhile, Indian demand for cashews continues at lows, making hard a bullish trend as almonds, walnuts and pistachios are increasing their market share in the nut market.
World raw cashew nut (RCN) suppy, 2023-24 estimate (metric tons)

Country         2022/23        2023/24
Ivory Coast    1,270,000    1,335,000
India                590,000       740,000
Cambodia         670,000       680,000
Vietnam            450,000       400,000
Nigeria              270,000        360,000
Guinea-Bissau    250,000        270,000
Benin                250,000        250,000
Ghana               215,000        250,000
Burkina Faso      140,000        160,000
Guinea Conakry  140,000        160,000
Togo                    73,000        120,000
Senegal               95,000        100,000
Gambia               28,000          28,000
Mali                      7,000          10,000

Tanzania            185,000        260,000
Brazil                 147,200        117,800
Mozambique         90,000         90,000
Indonesia             80,000         80,000
Kenya                    5,000           5,000

Total               5,010,200     5,572,500

Apr 24 - India's sugar demand surges in heat wave and election season
India's sugar consumption this year is poised to hit a record high as demand during the peak summer season gets a boost from heat waves and the mobilisation of millions for elections in the scorching temperatures. Higher consumption would lift local prices and boost margins of sugar producers such as Balrampur Chini, Shree Renuka Sugars, Bajaj Hindusthan, and Dwarikesh Sugar and help them in making cane payments on time to farmers.

Apr 24 - Brazil's robusta coffee yields lower than expected at start of harvest

Agricultural yields at the start of the harvest for Brazil's 2024 robusta coffee crop are reportedly lower than expected, a result of extremely high temperatures during the last summer in the country, according to farmers and coffee experts. "What we are hearing from the farmers is that the beans are smaller than last year, they did not develop as they should," said Luiz Carlos Bastianello, president of Cooabriel, Brazil's largest robusta coffee co-op.

Apr 23 - Uganda's March coffee exports plunge 32% yr/yr on poor harvest
Uganda's coffee exports plunged 32% year-on-year in March, hurt by a poor harvest in one of the major growing areas, the state-run sector regulator said on Monday. The east African country shipped a total of 329,686 60-kg bags during the month, Uganda Coffee Development Authority (UCDA) said in a report.

Apr 19 - Fears over coffee shortages send prices soaring to new highs (FT)
Heatwave in Vietnam damages robusta crop and prompts buying spree, pushing futures contract to highest since launch.
Global coffee prices are soaring as hot, dry weather in major producing countries in south-east Asia spurs fears of shortages.

Both cheaper robusta and higher-end arabica beans have rallied sharply since the start of the year. London robusta futures, the global benchmark, hit $3,948 per tonne on Friday, a record since the contract started trading more than 16 years ago. Arabica futures in New York also rose to $2.34 a pound — the highest level since September 2022.

Italian coffee company Lavazza recently blamed falling profitability on rising coffee prices, even as it announced a 13 per cent increase in revenue last year to $3bn. “The sharp increase in the cost of the raw material” had created an “extremely complex” macroeconomic scenario for the industry, said Lavazza Group chief executive Antonio Baravalle.

The bulk of the world’s robusta beans, used in instant coffee and espresso, are grown in Vietnam. Normally the country’s rainy season is well under way by mid-April, but this year a prolonged heatwave is damaging the crop.

This has compounded existing supply constraints and sparked concerns among roasters of a global shortage, prompting a buying spree, according to Carlos Mera, head of agricultural commodities at Rabobank. “There’s not much coffee left unsold in Vietnam.”

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 - Kenya’s Weekly Coffee Sales Reach $10 Million
- Kenya’s Coffee prices surged by three percent in the latest auction, driven by concerns of a global shortage exacerbated by heavy rains disrupting Brazilian crop yields. This spike propelled farmers’ overall earnings for the week to $10 million. During this week’s auction, the price of the beverage soared to $245, up from $237 in the previous sale.

On Tuesday, both arabica and robusta coffee prices experienced significant increases in the world market, with arabica hitting a one-month high and robusta reaching an unprecedented peak. Market momentum was fueled by persistent worries stemming from Monday regarding the potential impact of extensive rainfall in Brazil’s key coffee-producing regions on crop yields. The Minas Gerais region, which accounts for roughly 30 percent of Brazil’s arabica production, suffered negative impacts from the rains, raising concerns about supply disruptions in the market.

- This uptick in prices translated into a commendable boost in the overall sales value, climbing to an impressive $10.2 million from the previous $7 million. Notably, Kenya’s premier coffee-grade AA witnessed a spike in value, with a 50-kilo bag commanding $315 compared to the previous sale’s $313. Similarly, Grade AB, the second-tier in terms of quality, experienced an increase, fetching $247 per bag, up from the preceding $237.

The government of Kenya is actively advocating for coffee reforms aimed at increasing farmers’ earnings by eliminating brokers along the value chain. Kenya primarily sells up to 95 percent of its total production to the world market, with only five percent allocated for local consumption.

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".


May 23 ended the last trading day of last week slightly firmer at GBP +8 at GBP 2009, a full GBP 2 lower than last Monday's open at GBP 2011. The week saw a volatile weekly pattern, with a high of GBP 2038 and a low of GBP 1989, where price fixing from the origin and occasional price hedging from the industry balanced each other out. In the end, not much happened in cocoa. The Commitment of Traders figures, as per the reporting deadline of 7 February, will not be published until further notice. In the grading room, one BDU Nigeria (fresh arrival) and one BDU Guinea (regrade) went under the knife on Friday. Both BDUs passed the test.