OfBusiness Coffee Dailies | 7th July 2023

Price

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

• Robusta G1: 18-16 grade is priced at 2845 USD per metric ton.
• Robusta G2: 16-14 grade at a cost of 2755 USD per metric ton.
• Robusta G3: 14-12 grade at a cost of 2675 USD per metric ton.
• Additionally, Arabica coffee is priced at 5075 USD per metric ton.

Demand and Supply

• Dollar index dropped from a 3-week high, causing short covering in coffee futures. Brazil’s dry weather accelerated the coffee harvest, leading to lower costs. Arabica coffee hit a 5-1/2 month low. Brazil’s coffee harvest progress reached 34.6% by June 30, surpassing the previous year’s rate of 25.7%.

News

• London futures closed at $2,509.00, dropping 0.11% from the previous $2,512. The range for the day was 2,500.00 to 2,541.00.
• US Coffee C Futures experienced a 1.06% increase, closing at 160.58. The day’s range was 155.83 to 163.90.
• Fair Trade USA is maintaining current minimum prices and price surcharges for all green coffee sold with its Fair Trade Certified logo until the end of 2023.
• Starting from August 1st, the prices of certified Fairtrade International (FLO) coffee will increase on contracts, resulting in higher costs for both minimum and premium varieties.
• Fair Trade USA announced today the launch of “Innovation for Impact,” a new initiative focused on redesigning the Fair Trade Certified program to prioritize volume scalability, producer impact, and sustainability concerns such as climate change.

OFB’s Opinion

• It seems that Robusta prices have reached a stable point, remaining around the 2500 mark for several days now. As the supply continues to grow, it is anticipated that prices will decrease further, potentially dropping to the 2400 mark in the upcoming days.