Greetings coffee friends! Here is this week’s Coffee Origins Digest covering Monday 28 February – Friday 4 March, where we comment on some of the key fundamental green coffee topics of the moment.

Summary

  • Colombia announces a fall in coffee production for February 2022 by 16.6% over the previous year
  • Honduras figures an increase in production for January by 12.3% over the previous year

Certified Stocks

The number of certified washed Arabica coffee stocks held against the ICE exchange by the close of the week was 1,003,338 bags, which is a small drop from the close of the previous week by 24,668 bags. For clarity, 94.30 percent of these certified stocks are held in Europe or 946,099 bags. A total of 428,280 bags, or 42.96 percent of the coffees recorded and kept in the exchange’s consumer country accredited warehouses, were Brazil washed arabica. A further 47.50% originated from Honduras. Additionally, the number of bags awaiting grading has increased to 91,804 bags for the close of the week.

Brazil

Brazil’s green coffee exports for February were 290,200 bags, or 9.11 percent higher than the same month last year, totalling 3,475,183 bags, according to the Brazilian government. The official breakdown of coffee exports by description for August will be announced soon, and it is expected to provide a more precise picture of this figure.

Colombia

Colombia’s National Coffee Growers Federation announced that the country’s coffee production fell by 179,000 bags in February, or 16.16 percent, compared to the same month last year, to 928,000 bags. As a result, cumulative coffee exports for the first five months of the current coffee year, October 2021 to September 2022, were 1,209,000 bags, or 18.50 percent fewer than the same period in the previous coffee year, which totalled 5,324,000 bags.

Colombia’s National Coffee Growers Federation also announced that the country’s coffee exports in February were 295,000 bags, or 23.14 percent, lower than the same month the previous year, totalling 980,000 bags. As a result, overall coffee exports for the first five months of the current coffee year, October 2021 to September 2022, were 627,000 bags, or 10.51 percent, lower than the same period the previous coffee year, totalling 5,341,000 bags.

Vietnam

Domestic coffee prices in Vietnam fell this week, after a drop in London prices due to difficulties in the supply chain and payment systems, as well as rising oil prices due to the ongoing Russia-Ukraine conflict. The London ICE May contract had lost 6.8% or $149 in the past week, finishing at $2,030 per tonne, the lowest level since September last year. Farmers in Vietnam’s Central Highlands, the country’s largest coffee-growing region, sold coffee for 38,900-41,000 dong ($1.70-$1.80) per kg, down from 40,600-41,800 dong previous week.

Honduras

According to preliminary figures from Honduras’ National Coffee Institute, the country’s coffee exports in January were 57,390 bags, or 12.33 percent higher than the same month last year, totalling 522,865 bags. This has contributed to cumulative coffee exports for the first four months of the October 2021 to September 2022 coffee year hitting 1,003,680 bags, up 259,781 bags or 34.92 percent from the same period the previous coffee year. This surge in coffee exports was likely owing to the lockdown environment of the previous year, as well as Hurricanes Eta and Iota, which inflicted catastrophic infrastructural damage in October 2021.

Are you looking for pricing analysis for the week? Read our Coffee Markets Summary here.

Published March 6, 2022
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