Coffee prices up 30% in 2021

In 2020, the coffee market in Brazil experienced a record production, estimated at about 63.1 million 60-kilogram bags.  The harvest was influenced by the positive bienniality of arabica coffee and by favorable climatic conditions on the coffee plantations. This increase in production, combined with the high exchange rate in Brazil and attractive international prices, also contributed to record coffee exports, with shipments of around 43.9 million bags to the foreign market.

The increase in Brazilian coffee exports in 2020 helped to limit domestic supply and support domestic prices. In 2021, there is a continuation of the scenario of heated exports in the first four months, although the fall in production to be harvested this year limits the availability of coffee for export in the following months. Specifically on the external level, between January and April 2021, Brazil exported around 15.8 million bags of coffee, which represents an increase of 24.3% in comparison with the same period in 2020.

See the chart below for a history of Brazilian coffee exports since 2019:

Brazilian Coffee Exports (HS 0901 and 2101) | Jan 2019 to Mar 2021 | TEU

Graph source: DataLiner (click here to request a demo)

In the first four months of 2021, the total value of Brazilian coffee exports reached US$ 2 billion, an increase of 21.4% in relation to the same period in 2020. In this period, Brazil exported coffee to more than 120 countries.

In the coffee harvest to be harvested in 2021, the outlook is for restricted domestic supply due to the estimated drop in production and favorable conditions for coffee exports. The coffee harvest has already started in the main producing regions and is expected to gain strength between May and June, with the market keeping an eye on the climatic conditions during the evolution of the harvest.

Source: Agrolink

To read the full original article, access the link below:

https://www.agrolink.com.br/noticias/cotacoes-do-cafe-avancam-30–no-ano_450791.html

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