OfBusiness Coffee Dailies | 29th November 2023

Price

The prices of various coffee grades at Chennai Port are as follows:

• Robusta G1: 18-16 grade is priced at 3010 USD per ton.
• Robusta G2: 16-14 grade at a cost of 2905 USD per ton.
• Robusta G3: 14-12 grade at a cost of 2785 USD per ton.
• Arabica coffee is priced at 5440 USD per ton.

Demand and Supply

• Coffee prices on Tuesday exhibited a mixed trend, as nearest-futures (Z23) achieved a 5-and-a-half-month high, and March Arabica recorded a 1-1/2-week high. The ICE-monitored Arabica coffee stockpiles reached a 24-year low of 289,699 bags on November 16, signaling a bullish trend for coffee prices.
• Robusta coffee inventories, as tracked by ICE, slightly increased to 4,181 lots on Tuesday, surpassing the record low of 3,374 lots reported on August 31.
• On the downside, the USDA’s Foreign Agricultural Service (FAS) predicted a +12.8% year-over-year increase in Brazil’s Arabica production for 2023–2024, reaching 44.9 million bags. This is attributed to higher yields and expanded acreage.
• Colombia, the world’s second-largest producer of Arabica coffee, is expected to produce 11.5 million bags in 2023–2024, reflecting a 7.5% year-over-year increase, as per USDA’s FAS.

News

• London futures concluded at $2,541.00, marking a 0.07% decrease, with a day’s range between $2,516.00 – $2,549.00.
• US Coffee futures closed at $172.53, representing a 2.06% increase, with a day’s range between $168.57 – $174.93.
• Oatly has launched the Hey, Barista app, a coffee magazine supported by the company. The app provides café listings along with insights from industry professionals and creatives, accessible to both iOS and Android users.
• In China, Luckin Coffee has surpassed Starbucks as the leading coffee chain, boasting approximately 11,000 stores nationwide, thanks to aggressive expansion and the incorporation of technology like mobile ordering.

OFB’s Opinion

• Tuesday’s coffee market displayed a mixed performance, witnessing nearest-futures (Z23) reaching a 5-and-a-half-month high, and March Arabica hitting a 1-1/2-week high. The reduction in coffee inventories has contributed to a market upswing, signaling a bullish trend.