Coffee: Brazil dodges logistical bottlenecks and ups exports

Brazil exported 2.8 million bags of coffee in August 2022, up 10% from July but down 2.5% year-on-year. Despite logistical bottlenecks and a slower pace of sales (from coffee growers to exporters), exports of Arabica coffee beans increased by 1.4% in 2022.

On the other hand, Brazil shipped just 1 million 60-kilogram bags of robusta beans in 2022, down 62% year on year. This is likely due to the local industry’s increased use of robusta coffees in its blends. The assessment is based on Rabobank’s September report for the Brazilian coffee market.

According to the report, in September 2022, the barter ratio in the spot market reached 3.2 bags of coffee per tonne of fertilizers, the same level seen last year but 1.9% from August.

Despite the increase in coffee prices, the rise in urea costs meant no more changes in barter relations since last month. Given the uncertainties in the natural gas market, urea prices are likely to remain volatile.

See below the track record of the volume of coffee (HS 0900, HS 0901) exported by Brazil from January 2021 to July 2022. Data are from DataLiner.

Brazilian coffee exports | January 2021 – July 2022 | WTMT

Source: DataLiner (click here to request a demo) 

Coffee prices

In August 2022, local coffee prices reached an average of R$ 1,302/60-kilo bag, a decrease of 1.3% compared to July but still 26% higher over August 2021. In September 2022, coffee prices averaged R$1,317/bag.

According to Rabobank, August was a dry month in most coffee-producing regions. Harvesting activities were almost completed by the end of the month, with drier weather favoring harvest progress and coffee quality.

Isolated rains caused early flowering in the region of Alta Mogiana (in the state of São Paulo) and south of Minas Gerais. If there is dry weather in the upcoming weeks, productivity for the 2023/24 harvest may deteriorate. Rabobank reported lower-than-expected yields in the current harvest, particularly in the Minas Gerais Cerrado biome region.

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/agricultura/cafe-apesar-de-gargalos-logisticos-brasil-aumenta-exportacao/

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